20 Dec 2010 18:59

Norilsk Nickel selling 8% quasi-treasury shares to Trafigura

MOSCOW. Dec 20 (Interfax) - MMC Norilsk Nickel has entered into an agreements with Trafigura Beheer BV to sell MMC Norilsk Nickel ADRs held by its wholly-owned indirect subsidiaries and representing approximately 8% of Norilsk Nickel's share capital, Norilsk Nickel said in a statement.

"The sale further strengthens the relationship between MMC Norilsk Nickel and Trafigura. Trafigura is the world's largest independent oil trader and the second largest independent trader of non-ferrous metals," the statement said.

The sale has allowed MMC Norilsk Nickel to realize a substantial gain on investments in MMC Norilsk Nickel securities. The proceeds from the sale will be used for general corporate purposes.

MMC Norilsk Nickel said it understands that Trafigura has no current plans to increase its stake in the Company to over 10% of MMC Norilsk Nickel's share capital, which would require an application for approval under the Russian Strategic Investment Law.

In connection with the sale, Trafigura entered into a lock-up pursuant to which it undertook not to sell the MMC Norilsk Nickel ADRs acquired in the transaction to a non-affiliated third party until after June 30, 2011.