Kola GMK could finance Norilsk Nickel buyback with part of 61-bln ruble loan
MOSCOW. Nov 18 (Interfax) - The board of directors of MMC Norilsk Nickel has approved a deal between OJSC Kola Mining and Metals (Kola GMK, one of Norilsk's two production sites in Russia) and NN Investments (Norilsk's subsidiary, which conducted a buyback of $4.5 billion), Norilsk said in a statement.
Norilsk did not specify the nature of the deal.
On November 11, the board of directors approved a plan by the Kola GMK to attract a 61-billion ruble loan from Sberbank of Russia . In parallel, Norilsk is borrowing 9 billion rubles from Sberbank and could partially guarantee Kola's credit line.
Norilsk did not comment on the possibility of using Kola's loan to finance NN Investments' buyback, which was held on October 28.
A source close to Norilsk said on Friday that Kola is not going to transfer the entire loan to NN Investments. It will spend part of the funds on the basis of its own investment needs.
The buyback settlement will be completed in the week after November 18. The period during which Norilsk shareholders could sign contracts on selling shares expired on Friday.
Norilsk attracted a pre-export syndicated loan of $1.5 billion for the buyback. It did not disclose other possible sources of financing. Norilsk President Andrei Klishas has said only that half of the sum was expected to be in the form of a loan, and the rest would be financed with the company's own funds and financial instruments.