🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Russian magnate Deripaska to quit roles at his two biggest firms

Published 02/19/2018, 09:08 AM
© Reuters. FILE PHOTO:President of En+ Group, Oleg Deripaska, attends an agreement signing ceremony in Moscow
GMKN
-
RUAL
-
ENPLDR
-

By Polina Devitt and Anastasia Lyrchikova

MOSCOW (Reuters) - Russian billionaire Oleg Deripaska plans to step down as the president of the two companies he controls, aluminum giant Rusal (HK:0486) and En+ Group (L:ENPLq), two sources familiar with the matter told Reuters.

The change comes less than a month after the inclusion of Deripaska and dozens of Russian billionaires on a U.S. government list of Russian oligarchs. While it is not a sanctions list, Western banks may be reluctant to deal with Russian companies whose owners are on the list.

En+ has invited international banks to pitch for the sale of $1 billion of shares in the company, three sources told Reuters last week. However, the inclusion of Deripaska on the U.S. list is making some U.S. banks who worked with En+ on its initial public offering in November wary about participating this time, one of the sources said.

Deripaska's En+ owns assets in metals and energy, including a 48 percent stake in Rusal, a Hong Kong-listed Russian aluminum producer, which is a big consumer of hydroelectricity produced by En+'s power companies.

Deripaska has decided to relinquish direct operational control in the two companies because En+ became a publicly-listed company after its share sale in November, one of the sources told Reuters. The boards of directors of En+ and Rusal will consider the management changes at their meetings on Feb. 22, the source added.

The upcoming management re-shuffle was first reported by the Russia's Kommersant newspaper on Monday. Maxim Sokov, En+ current chief executive officer, will become En+'s president, Kommersant said.

Vladislav Soloviev, Rusal CEO, will become CEO of En+ and president of Rusal, while Rusal's current chief financial officer, Alexandra Bouriko, will be appointed Rusal CEO, one of Reuters' sources said.

Rusal and En+ declined official comment.

Most metal sector analysts saw the news as neutral for Rusal and En+ given that a succession plan has already been lined up, drawing on existing company managers, which should ensure continuity.

But some analysts questioned the timing of Deripaska stepping down.

Rusal owns a stake in Norilsk Nickel (MM:GMKN), and a power struggle over the nickel producer resurfaced on Friday. Russian billionaire Vladimir Potanin has offered to buy the $1.5 billion stake in the mining group held by Roman Abramovich, owner of the Chelsea soccer club. Deripaska tried to block the deal.

© Reuters. FILE PHOTO:President of En+ Group, Oleg Deripaska, attends an agreement signing ceremony in Moscow

"The timing looks a bit strange, coinciding with the resumption of the shareholder conflict at Norilsk Nickel," analysts at Aton said in a note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.