March 8, 2018 / 5:06 PM / 5 months ago

Russia's Nornickel co-owners reach conditional share deal

LONDON (Reuters) - Russian billionaire Roman Abramovich has struck a deal that would allow him to sell a 4 percent stake in miner Norilsk Nickel (GMKN.MM) to fellow shareholders Vladimir Potanin and aluminum producer Rusal, pending the outcome of a court case, a lawyer for Rusal said.

FILE PHOTO: Vladimir Potanin, co-owner of Norilsk Nickel, attends an agreement signing ceremony with the Krasnoyarsk region's government, in Moscow, Russia December 12, 2017. REUTERS/Sergei Karpukhin

Under the provisional arrangement, Abramovich’s Cyprus-based company Crispian would be able to sell the shares to Potanin and Rusal in proportion to their existing holdings in Norilsk Nickel (Nornickel), the lawyer told a London court on Thursday.

FILE PHOTO: Chelsea owner Roman Abramovich Action Images via Reuters / John Sibley Livepic

However, any transfer of shares would be reversed if the court rules in favor of Rusal in a dispute.

Rusal (0486.HK) is trying to stop Chelsea soccer club owner Abramovich from selling Nornickel shares, arguing that would violate a 2012 shareholder agreement.

Interros, which manages Potanin’s assets, said it planned to complete its purchase of a 2 percent stake in Nornickel from Abramovich next week. Rusal did not immediately reply to requests for comment.

The ownership dispute is part of a long-running battle for control of Nornickel, a $31 billion company that competes with Brazil’s Vale VALE5.SA for the rank of the world’s top nickel producer. It is also the world’s largest palladium producer.

Potanin owns a 30.4 percent stake in Nornickel and Rusal, controlled by billionaire Oleg Deripaska, holds 27.8 percent. Abramovich and his partners hold a 6.3 percent stake.

Judge Christopher Butcher said the trial over the legality of the share sale by Abramovich would start on May 14 unless the parties appealed for a delay by April 13.

Reporting by Peter Hobson; Additional reporting by Polina Devitt; Writing by Peter Hobson and Polina Devitt; Editing by David Goodman and Mark Potter

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below