Russia's largest nickel producer Norilsk Nickel has completed a considerable number of deals under its $4.5 billion buyback program in advance of a court ruling suspending the move, Norilsk General Director Vladimir Strzhalkovsky said on Friday.
The buyback program was launched on January 27 and was to be completed on February 10, but Norilsk said last week that a ruling by a court in the Federation of Saint Kitts and Nevis blocked the program following a suit from RusAl, the world's largest aluminum maker and holder of a 25% stake in Norilsk. RusAl said the program would distort the company's shareholder structure.
RusAl, controlled by billionaire Oleg Deripaska, and Interros, the investment arm of billionaire Vladimir Potanin, have long been fighting for control over the mining company. RusAl says the Norilsk board has become dominated by officials linked with Interros after a June AGM, when RusAl lost one board seat, while Interros increased its representation.
In December, Norilsk signed a deal with Trafigura Beheer BV on a sale to it of American Depositary Shares (ADS) equaling about 8% percent of Norilsk's stock.
RusAl claimed the deal was not approved by the Norilsk board of directors, its details were opaque and Trafigura may not be the end buyer of the shares, while a company friendly to Norilsk may have financed the purchase.
Strzhalkovsky said Norilsk had no agreements with Trafigura to sell nickel products and the companies had not finished the ADS deal.
He said that Trafigura, which became a new Norilsk shareholder, would nominate candidates to the board on its own. RusAl has initiated an extraordinary shareholders' meeting on March 11 to re-elect the current board.
Strzhalkovsky also said company revenue in 2010 was expected at $15 billion, net profit at $5 billion, while investment in 2011 would reach $2.8 billion.
KRASNOYARSK, Russia, February 18 (RIA Novosti)
