Russia's largest nickel producer Norilsk Nickel has made a $12 billion offer to the world's largest aluminum maker RusAl to buy its 25 percent stake in Norilsk Nickel, the mining giant said on Thursday.
"The offer price is set at a premium to the market and, according to company information, considerably exceeds the acquisition price RusAl paid for the stake in the company in 2008," Norilsk said in a statement. "The analysis of institutional investors' and shareholders' opinions made by the company demonstrated that they consider this course of events to be the most efficient at the moment."
Norilsk said that JP Morgan, Morgan Stanley, Goldman Sachs, Societe Generale, UBS, Deutsche Bank, HSBC, and other banks had expressed their readiness to co-finance the acquisition.
"According to experts and analysts, the acquisition of RusAl's stake and the subsequent pay-off of the company's shares will allow the company to retain the approved dividend policy at the former level, 20-25% of net profit, to focus on strategic planning of the company's development, to fulfill the investment and production programs of the company, to comply with social obligations to workers. It will also allow a considerable increase the number of independent directors on the company's board so that they constitute the majority, which corresponds with the best international practices," the company said.
Norilsk said it would wait until 3 p.m., December 28, 2010 for RusAl's response.
MOSCOW, December 16 (RIA Novosti)
