VEB may sell a stake in Rusal

by time news

VEB is considering selling a minority stake in Rusal amid high aluminum prices, Ekaterina Serebryannikova, executive director of the state corporation, said.

“Given the situation on the market, the price of aluminum is reaching historical highs. We are seriously considering the possibility of implementing our package in accordance with the approved corporate procedures within the framework of the current legislation and in the interests of the development of UC Rusal, ”Serebryannikova told RBC.

She added that the deal should not adversely affect the value of Rusal’s shares. If the transaction is implemented, VEB will also consult with the Moscow Exchange, where the company received a listing in 2015.

VEB acquired a 3.15% stake in the aluminum giant during the company’s IPO in Hong Kong in January 2010. The deal amounted to $660 million (19.8 billion rubles at the Central Bank exchange rate at that time). According to RBC, citing a source close to the management of VEB, this share has remained the same. Now such a package is worth $515 million (38.5 billion rubles at the current exchange rate) on the stock exchange.

Rusal’s main shareholder is En+ Group, founded by Oleg Deripaska (56.88%). Viktor Vekselberg’s Sual Partners owns a 25.72% stake, and another 17.4% of the company’s shares are in free float.

Aluminum prices have risen by 18% since the beginning of the year, hitting $3,230 a ton this week for the first time since July 2008 on the back of higher electricity prices and low levels of the metal’s inventories.

European aluminum producers, which account for up to 15% of the metal’s global exports, have warned of production cuts and capacity shutdowns, with some analysts forecasting long-term metal prices to rise to $3,400/t as a result of current general electricity price increases and future refurbishment costs industries for the use of clean energy.

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