UC Rusal plans to direct dividends from its 25% stake in MMC Norilsk Nickel to pay off company’s debt, said CEO of the aluminum company Oleg Deripaska, in an interviewto Russian TV channel.
"We are one of the shareholders of Norilsk Nickel, and we do have obligations to the banks. Virtually all funds will go to pay off our old bank loans", said Deripaska. According to 9m2012 IFRS report, net debt of Rusal decreased by 3.1% to $10.710 billion from $11.049 billion at the end of 2011.
Russian billionaire Roman Abramovich agreed to buy 7.3 % stake in Norilsk Nickel as the two biggest owners of the world’s top supplier of the metal seek to end a four-year feud over control of the company. Abramovich’s Millhouse LLC investment company will acquire the stake in Moscow-based Norilsk as part of a settlement between shareholders United Co. Rusal and billionaire Vladimir Potanin, Hong Kong-listed Rusal said today in a statement. The purchase price wasn’t disclosed.
Bloomberg reports, that Vladimir Potanin, whose Interros Holding Co. owns 28 percent of Norilsk Nickel, will take over as chief executive officer, Rusal said. Rusal, controlled by billionaire Oleg Deripaska, owns 25.1 percent of Norilsk. Potanin and Deripaska have battled publicly and in the courts for control of Norilsk since May 2008.
Russian President Vladimir Putin said he hoped a long-running shareholder conflict at Norilsk Nickel, the world's largest nickel and palladium miner, would soon be resolved, signaling a possible new round of talks between its owners.
Putin gave no indication on Monday, however, of how billionaire shareholders Vladimir Potanin and Oleg Deripaska might end a battle for control of Norilsk, which has drained cash out of the business and sapped long-term investment.
Today, Norilsk Nickel’s Board of Directors should approve the list of candidates to fill the new Board, writes Russian newspaper Vedomosti. The list of nominees will be submitted for the elections on company’s AGM this summer. Norilsk Nickel’s board have 13 seats, which according to the shares ownership and previously reached agreements distributed in the following way: Interros - 4 seats, UC Rusal, 2 seats, Independent Directors - 5 seats, Norilsk Nickel - 1 seat, Trafigura - 1 seat.
UC Rusal, according to the Russian media, has proposed 8 candidates to the new board. The list includes four acting directors of the board — Oleg Deripaska, co-owner and general director of UC Rusal, his deputy in Rusal, Maxim Sokov, former head of Presidential administration Alexander Voloshin and chairman of the BoD of Metalloinvest, Farhad Moshiri.
Oleg Deripaska May Be Banned From Europe If Connection Between UC Rusal And Hyposwiss Theft Will Be Proved
International newswires reported that Swiss police have arrested a man for trying to sell confidential client data from Hyposwiss Private Bank, as it was confirmed by Switzerland's prosecutor on Wednesday, Feb. 29.
The prosecutor said the unnamed individual, formerly employed by a firm that provided services to Hyposwiss, had approached a law firm with the data, and remains in custody after his Feb. 16 arrest.
Swiss court still to review Rusal’s complaint which it has filed against The Federal Criminal Court of Switzerland who has turned down its earlier claim with allegations addressed to Norilsk Nickel’s recently held $4.5 billion buy-back procedure and a 8.1% shares sale to the international trading house Trafigura which happened almost a year ago. Rusal calculated its losses from Interros actions at more than $1 billion and named former board member of Hyposwiss Private Bank Zurich Hans Bodmer for his alleged role in the laundering scheme.
Russian nickel and palladium giant MMC Norilsk Nickel is still in the centre of the feud between Russian oligarchs Vladimir Potanin and Oleg Deripaska, who bought out the stake of Potanin’s ex-partner Michael Prokhorov and ran into serious disagreement over how to run nickel combine with Potanin from the beginning of their partnership.
While Prokhorov is making his new path as the politician balloting for the president chair in the competition on the upcoming elections with country’s Prime minister Vladimir Putin, Oleg Deripaska still tries to diminish or even destroy his Norilsk partner Vladimir Potanin. Now Deripaska uses Swiss courts where he publicly accuses Potanin in money laundering, using trustful Swiss press to transmit and spread his message in the way we have already described before.
In April, 2008 UC Rusal has bought into Norilsk Nickel when Oleg Deripaska has agreed with Michael Prokhorov, ex-parter of Vladimir Potanin in this company, about the purchase of 25% stake. Deripaska had something in mind when he was buying into this Russian metallurgical giant, but was that a thought about mutual management of this company with Interros?
Since 2008, relations between the two shareholders had started to chill out, they found controversies which had later turned into open confrontation and disagreement on almost all significant topics. In the beginning of the conflict UC Rusal has put some effort into settling the differences, but 2010 and 2011 was spent by Oleg Deripaska in the attempts to put all kinds of pressure on Vladimir Potanin. Deripaska has appealed to Krasnoyarsk administration, President Medvedev, Federal prosecutors and financial regulators of the country. After Deripaska has failed in his attempt to sabotage Interros and management of Norilsk Nickel domestically he has engaged his international legal-fighting machine to question and revoke every single operation Norilsk Nickel has implemented.
Russian aluminum producer UC Rusal goes flop in its plan to use international judicial machine as an instrument of influence in its fight over Norilsk Nickel. UC Rusal has recently lost control over Norilsk Nickel’s board and later on has boycotted the board altogether. Unwilling to sell it’s stake in Norilsk Nickel and being unable to gain control over the company’s board, Oleg Deripaska has decided to throw all forces to legally refute all decisions made by Norilsk Nickel’s management, including the sale of 8.1% of shares to to Dutch trader Trafigura completed last year. Unfortunately for Mr. Deripaska international courts are not so easy to crack, he completely failed in all of his attempts to persuade court officials to follow his leads.
It is not a secret that in Russia, which some claim to be the world's biggest energy producer, with annual GDP of about $1.9 trillion, valuing for 2.8 percent of the world economy, the political situation may be judged by some experts as unstable. Country is facing presidential elections in the early 2012 with another complicated castling planned by Russian political leaders. While most of Russia’s publicity efforts has been concentrated on balancing country’s positive reputation, international media is full of stories with Russian businessmen advocating for international courts to settle their disputes of various kind which are called as the “billionaire battles”.
The word “oligarch” had became a widely recognized appellative name for the most rich and successful businessmen from Russia, everyone knows they influential and of course they do transfer their personal reputation to the image of Russia as a country on the international political arena. This is why current behavior of leading Russian businessmen so malapropos — their public skirmishes and conflicts advocated by international courts not only exploit international judicial system and trust of respectable business media, but also transfer negative reputation to the political situation in Russia.
Norilsk Nickel’s shares buyback procedure, which has been announced and approved by the company’s board in September of this year has faced another obstacle perfectly orchestrated by Vladimir Potanin’s rival in the fight for Norilsk Nickel — Oleg Deripaska, the owner of UC Rusal and co-shareholder of Norilsk Nickel. Mr. Deripaska has lost several fights for control over Russian nickel champion in a raw. Norilsk Nickel’s board of directors has been headed by the Potanin ally, and the board has accepted a buyout procedure which would not allow UC Rusal to get control over the company.
But, apparently, UC Rusal’s lobbying machine was able to recruit another soldier to their side. According to Russian newspaper Vedomosti, Federal Antimonopoly Service’s (FAS) head Igor Artemiev has distributed a letter to Norilsk Nickel’s management, company’s key shareholders (Interros and UC Rusal), and its bankers (Bank of New York Mellon, ING Bank Eurasia and Citigroup) in which he warned all interested parties that FAS, as a market’s financial regulator, considers Interros and Norilsk Nickel to be a “group of associates”.
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