15.06.2021

RUSAL to participate in the buyback of Nornickel shares

Moscow, 15 June 2021 – RUSAL (SEHK: 486, Moscow Exchange: RUAL), a leading global aluminium producer, has applied to participate in the buyback of Nornickel shares, the world’s largest producer of palladium and high-grade nickel, and a major producer of platinum and copper.

The Company will participate in the repurchase of Nornickel shares to raise additional funds to finance its own investment programme. In particular, RUSAL is currently completing the construction of the Taishet aluminum smelter. The Company is also preparing to rebuild the Krasnoyarsk, Irkutsk, Novokuznetsk and Bratsk aluminium smelters, which will require capital of about US $5 billion to complete.

The decrease in RUSAL's stake as a result of the repurchase will be partially compensated by the subsequent cancellation of the majority of shares bought back by Nornickel. The exact amount of Nornickel shares that will be repurchased by Nornickel from Rusal will be determined once the buyback procedure is complete, subject to the results of submission by other shareholders of their applications to sell Nornickel shares. Irrespective of the outcome, RUSAL expects that its stake in Nornickel will remain above the blocking stake (25%+1 share).

Deputy General Director Maxim Poletaev commented: “Share buybacks, as well as dividends, are a form of profit distribution among shareholders. This year, as suggested by Nornickel’s management team, the Company's final dividends for 2020 were reduced. However, thanks to the share buyback, the amount of funds distributed among the shareholders of Nornickel will be close to the dividend payments for 2019“.

For information:
On April 27th, 2021, following the proposal of the Company’s largest shareholders, Interros, UC RUSAL and Crispian, the Board of Directors at Nornickel decided to conduct a share repurchase. Applications for participation in the programme will be accepted until June 18th, 2021 (inclusive). Payment for the shares is scheduled to be completed by July 3rd, 2021.

Interros, UC RUSAL and Crispian are the beneficial shareholders of PJSC MMC Norilsk Nickel with the following respective ownership interests, 34.6%, 27.8% and 4.7%.
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