Abramovich's Norilsk stake cut in revised deal to end billionaires' feud
Russia's RUSAL Plc said on Tuesday that Kremlin-favoured tycoon Roman Abramovich would buy a smaller stake in Norilsk Nickel, the world's largest nickel and palladium miner, than previously agreed in a revised deal that will also give him reduced voting rights.
Abramovich, the well-connected owner of London's Chelsea football club, would pay RUSAL and billionaire Vladimir Potanin $1.5 billion for a 5.87 percent stake in the Arctic miner, less than the 7.3 percent stake agreed last week. Analysts said, however, that the significance of the original deal to end a four-year shareholder battle over Norilsk Nickel would not change under the revised terms. "The whole point here is that you have now got the third party which can act as an arbitrator between the two largest shareholders and hopefully it means that Norilsk Nickel can be managed with less conflict and overhangs," said Andrew Driscoll, an analyst at CLSA.
RUSAL said last week that Potanin and the company's chief executive, Oleg Deripaska, had agreed to give Abramovich the biggest voting stake in their $30 billion company in a bid to end the two Russian billionaires' battle over Norilsk Nickel. Potanin and Deripaska agreed that Abramovich would buy a 7.3 percent stake, in the form of treasury stock, at market price. As part of that deal, the three parties would each contribute equal stakes, amounting to 22 percent of Norilsk, to an escrow account that would be voted by Abramovich's investment
company Millhouse - giving him the largest say over how the company was run.
On Tuesday, RUSAL said the terms of the deal had been revised and Abramovich would now buy a combined 9.29 million shares from Potanin and RUSAL at $160 per share. The revised terms meant that Abramovich would now hold 5.87 percent of Norilsk Nickel, while RUSAL would hold 27.8 percent and Potanin's Interros would hold 30.3 percent. Norilsk's treasury shares, which Abramovich had agreed to buy in the previous deal, would be cancelled, RUSAL said in the statement.
- Fixing probe now reaches Bollywood, son of Dara Singh held
- BCCI cashes Pune guarantee, Sahara walks out of IPL
- 'Sree spent Rs 1.95L on clothes, bought friend BlackBerry'
- Delhi firm with MoD as client is linked to Pak cyberattacks
- After Infosys, iGATE sacks Phaneesh Murthy for sexual misconduct
- 2 weeks after harassment, Haryana schoolgirls return, cops in tow