Deripaska 'to keep stake in Norilsk' 7th October 2008

The head of Oleg Deripaska's investment vehicle indicated yesterday (6th October) that the Russian billionaire will keep his 25 per cent stake in Norilsk Nickel. Some observers have suggested that Mr Deripaska will have to divest his stake in the mining firm to banks after taking similar action last week with his 20 per cent share in Canadian car parts manufacturer Magna. However, Gulzhan Moldazhanova, Chief Executive of his investment vehicle Basic Element (BasEL), explained that market conditions which have led to a reduction in Norilsk's share price recently are artificial. She said: "We plan to keep our participation in this company. Today the price we see on the market has nothing to do with the quality of the company and its real value." Mr Deripaska controls the world's largest aluminium producer Rusal, which bought the 25 per cent stake in Norilsk, whose shares plunged by over a quarter yesterday. Since finalising the deal, Rusal has been in dispute with billionaire Vladimir Potanin, a major shareholder in Norilsk, over the running of the company. Reports have suggested that Rusal is estimated to be $14 billion in debt following the purchase after it borrowed $4.5 billion from banks. Mr Deripaska has asserted that the $28.6 billion valuation placed on his assets by Forbes is misleading as it does not account for BasEL's debts relating to aluminium, oil, construction and food acquisitions. Source： www.platinum.matthey.com