January 24, 2018 / 11:55 AM / 2 years ago

Russia's En+ sees Glencore stake deal to close in first quarter - CEO

DAVOS (Reuters) - Russia’s En+ Group (ENPLq.L), which manages businessman Oleg Deripaska’s aluminium and hydropower businesses, plans to close a deal with Glencore (GLEN.L) to convert its stake in aluminium producer Rusal (0486.HK) into En+ by the end of the first quarter, En+ Chief Executive Maxim Sokov told Reuters.

Last year, En+ raised $1.5 billion in its initial public offering in London and Moscow. It also signed a non-binding deal with Glencore in which the trading firm would convert an 8.75 percent stake in Rusal to a stake in En+.

En+’s stake in Rusal, one of the world’s largest aluminium producers, will rise to 56.88 percent from the current 48.13 percent as a result of the conversion.

“We are aiming to close the deal of Glencore swapping its stake in Rusal to En+ by the end of the first quarter. Analysts estimates that the stake would be at around 10 percent are in general correct,” Sokov told Reuters on the sidelines of the World Economic Forum in Davos.

Sokov added that he saw a global aluminium price of $2,200 per tonne as justified in the current market environment, supported by China’s battle with the pollution which involves limiting aluminium production, among other factors. Benchmark aluminium prices CMAL3 were at around $2,220 per tonne on Wednesday.

Reporting by Dmitry Zhdannikov in DAVOS, additional reporting by Anastasia Lyrchikova in MOSCOW, writing by Katya Golubkova, editing by David Evans

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