Abramovich to Pay Potanin and Deripaska Directly for Norilsk Nickel Stake

Reuters reported that in a revision to the deal originally laid out, Russian tycoon Roman Abramovich will pay the firms of Vladimir Potanin and Oleg Deripaska directly for his stake in Norilsk Nickel (MCX:GMKN). Analysts have said that means the money won’t go to minority investors and that Norilsk will likely have to borrow money in order to increase dividends as it has promised.

As quoted in the market news:

Under the original deal, Abramovich was to buy a 7.3 percent stake in Norilsk from the company itself for $2 billion, and also be given voting power over some of Deripaska’s and Potanin’s shares, representing a total of 22 percent. The revision would see Abramovich buy a 5.86 percent stake for $1.5 billion and be given voting control over about 20 percent.

“The deal is disappointing to those minorities who expected funds from the deal to come to the company and to return via dividends,” Sosnovskiy said, adding the company would likely need to borrow to fund dividends instead.

Click here to read the full Reuters report.

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Equitas Resources (TSXV:EQT; FSE:T6UN) is one of the first junior resource companies in the last 20 years to hold such a large, consolidated land package in the Voisey’s Bay district. With a first-class, experienced team of professionals skilled in raising capital and managing successful exploration projects Equitas Resources has a tight share structure on early stage of nickel focused exploration. Learn more about this world class deposit.

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