Norilsk Nickel denies talks to buy out Rusal stake
MOSCOW. Sept 22 (Interfax) - MMC Norilsk Nickel has not received any proposals to buy out UC Rusal's stake in the company and is not holding negotiations on such a deal, the mining and smelting giant's president, Andrei Klishas told Interfax.
"Norilsk Nickel has not received a proposal to buy out Rusal's stake in the company. The company is not currently holding negotiations on buying out this stake, neither at the price of $18 billion reported in the media, nor for any other price," Klishas said.
Klishas recalled that Norilsk Nickel is planning to soon carry out a share buyback of $4.5 billion.
Klishas previously voiced plans to pursue a political career and run for the State Duma, but he did not rule out that he will remain at Norilsk Nickel if he does not make it onto United Russia's voting lists in the Duma primaries in September.
The valuation of Rusal's 25% stake in MMC Norilsk Nickel in the range of $18 billion-$20 billion was reported by source familiar with the details of a possible offer to buy out Rusal's stake in Norilsk Nickel. This appraisal was made by investment banks at the request of Rusal or its shareholders as an alternative to an appraisal commissioned by Norilsk Nickel, which had asked Citi, Societe Generale, Barclays Capital and TKB Capital for a fairness opinion of the price for its planned buyback.
The appraisal of $18 billion to $20 billion and assumes a 24% premium to an offer previously rejected by Rusal: $306 per share and $30.60 per ADR, the same price as for the buyback.
The source said that this is the valuation that Rusal chairman Viktor Vekselberg may propose to other Rusal shareholders for negotiations on the possible sale of the aluminum company's stake in Norilsk Nickel. Sual Partners, a company owned by Vekselberg and Leonard Blavatnik, controls 15.8% of Rusal.
It was reported earlier that Vekselberg was authorized by Rusal's board to consider offers from Norilsk Nickel that "will reflect the fundamental value of Rusal's stake in Norilsk Nickel."
Rusal in early September declined to sell Norilsk Nickel 15% out of its blocking stake for $8.75 billion, a deal that would have valued the 25% stake at $14.6 billion.
Back in February, Norilsk Nickel proposed Rusal sell 20% for $12.8 billion, valuing the 25% stake at $16 billion. Even earlier, in December 2010, Norilsk Nickel officially offered Rusal $12 billion for the 25% stake, but was prepared to go as high as $14 billion.