Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


Norilsk Nickel Dispute Over
December 6, 2012 20:05

Vladimir Potanin, Interros, and Oleg Deripaska, UC Rusal, have signed a peace deal to end their 4- year bitter dispute over the way Norilsk Nickel is run, where they both have a blocking stake.

Roman Abramovich has stepped in to help reconcile the two parties whose constant bickering tarred the corporate image and unnerved investors.

Abramovich's Millhouse Capital will buy 7,3% of treasury stock for $2 billion, and with the remaining 9.7 percent of the treasuries cancelled by the corporation, the Chelsea owner will become a third key shareholder.

The trio will then pool around 7.3 percent of shares to build a 22 percent stake that would be put to an escrow account run by Millhouse Capital on behalf of Abramovich as a guarantor of peace. He will also act as an arbiter in case of any disputes.

If any of the partners break the rules of the deal, the other two will get the right to buy a 7.5 percent stake with a 25 percent discount or face a penalty – 1.875 percent of shares sold for just one dollar.

The parties also agreed to impose a moratorium on the sale of most of the shares for the next five years.

Vladimir Potanin will replace Vladimir Strzhalkovsky as Norilsk Nickel's CEO, and the board of directors will be balanced out to include four members representing the interests of UC Rusal, four from Interros, two representatives of Millhouse and three independent directors (or three from Millhouse and two independent directors).

The chairperson of the board will have to be an independent directors agreed by the parties. The final composition will have to be approved by an extraordinary meeting of the shareholders.

Interros and Rusal also agreed to suspend their ongoing legal disputes. If the arrangements of the deal are implemented, the sides will drop their claims.

Norilsk Nickel’s shares gained 1.4 percent on the news as investors welcomed the reconciliation of the former foes.

Here are some interesting opinions of the corporate spat that divided the board previously - here and here

 




Author: Mikhail Vesely

Tags: Norilsk Nickel Vladimir Potanin Oleg Deripaska Rusal Roman Abramovich 

Next Previous

You might also find interesting:

Rosneft's Q1 2014 Financials Positive But Future Uncertain The Buzz Barometer: "The losers are the children." UK Finance Gurus Behind Russian Business - FT The battle for Arctic is canceled SPIEF 2013 Overview









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
invest  Russia international  Chukotka  Woodwork  Russian tourism  Dmitry Rogozin  Cyril and Methodius   Moscow  Modern Art  Komi Republic  Elbrus  Patriotic War of 1812  Mercedes-Benz Fashion Week Russia  Russian legislation  Open-Air Concerts  Moscow Kremlin   Russian newspapers  Exhibitions in Moscow  Sun  South Stream  Russian cuisine  six-seat taxi   Festivals in Moscow  terrorism  Ilya Ponomarev  Larisa Golubkina  Vladimir Potanin  Sculpture  Tunguska  Evgeny Mironov  Russian Cinema  Trololo  Russian business  Gazprom  Presidential Research Projects Program  travel to Russia  Two-Headed Eagle  Russian sport  Tatarstan  science units  Russian regions  Multimedia Art Museum  Kungur Ice Caves  Uralsib   Musical LIKBEZ  Museum of Old New Year  St. Petersburg  Toll Roads  Murmansk  active holidays in Russia 


Travel Blogs
Top Traveling Sites