Norilsk Nickel board approves offer to RUSAL

摘要

The board of directors at Arctic mining and smelting giant Norilsk Nickel this week approved a proposal to offer to buy 15% of the company's shares from UC RUSAL for $8.75 billion, around $306 per share. If RUSAL accepts, it will be proposed that a shareholder agreement be secured in relation to the 10% remaining in the aluminum company's hands, Norilsk Nickel said. The mining company's own funds and loan monies, thought to be as much as $4.25 billion, would be used in the deal. There will not be an offer to Norilsk's minority shareholders if RUSAL accepts the offer, but an offer will be made to minorities on the same terms if RUSAL rejects the offer. RUSAL itself said it still considers its investment in Norilsk Nickel to be strategic, but will discuss that company's share buyback offer in line with corporate governance procedures. Most analysts surveyed by Interfax agreed RUSAL will again reject the offer, even though the offer includes a 35% premium over share price and RUSAL would gain an opportunity for early debt paydown with the proceeds.