Russian billionaire Potanin will not join in Nornickel buyback
Russian billionaire Vladimir Potanin has decided not to take part in a buyback of Nornickel shares, his Interros Holding said on Friday, increasing the proceeds of aluminium producer Rusal from the deal.
Potanin owns a 34.6% stake in Nornickel, which plans to buy up to 3.4% of its shares for $2-billion, in partial compensation for a smaller than expected 2020 dividend.
Potanin's stake in Nornickel, a leading nickel producer and the world's largest producer of palladium, will rise after the buyback as the miner will cancel all of the shares it purchases, excluding 0.5% to be kept for an employee programme.
The increase of Interros's stake in Nornickel is in line with its long-term strategy as Nornickel is undervalued from its point of view, the holding said in a statement.
Rusal, the second largest shareholder at Nornickel with a 27.8% stake, applied to take part in the buyback in June, adding that its stake in Nornickel would remain above the blocking 25%+1 share.
Interros's decision not to participate in the buyback increases Rusal's future proceeds from the deal to $880-million from the $576-million it would get in case Interros applied for the programme, analysts at Sova Capital said in a note.
The calculation is based on 100% participation from Nornickel's minority shareholders, Sova Capital added.
Nornickel's board of directors will review the results of the buyback on June 22. The payment is expected by July 3.
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