Hot Stocks

Russia may buy into RUSAL IPO, gives $21 bln value

MOSCOW, Nov 19 (Reuters) - Russia may subscribe to shares in aluminium giant UC RUSAL during a placement later this year, a government source told Reuters on Thursday, signalling fresh state support to the firm’s indebted owner, Oleg Deripaska.

The source said state banking agent VEB was prepared to buy up to 3 percent of UC RUSAL for 14-18 billion roubles ($487.6-$627 million), thus valuing the world’s largest aluminium firm at $16.25-$20.9 billion.

The board of VEB, chaired by powerful Prime Minister Vladimir Putin, will on Thursday study whether to allow VEB to take money from the National Welfare Fund to invest in RUSAL’s IPO.

VEB is managing some of the money of the fund, which is meant to invest windfall oil revenues for future generations. (Reporting by Darya Korsunskaya)