Two Russian tycoons to sell 3% stake in Rusal via accelerated bookbuilding

According to a Reuters report, two Russian business tycoons Mikhail Prokhorov and Viktor Vekselberg have expressed intention to sell a 3-per cent stake in Russian aluminium company Rusal using accelerated bookbuilding (ABB). While Prokhorov is offering 0.7 per cent in Hong Kong-listed Rusal, Vekselberg is offering 2.3 per cent, one of the bookrunners confirmed.

The ABB deal announcement comes less than a week after En+ Group, which owns a 48 per cent stake in Rusal, said it would float an IPO in London and Moscow.

Based on Rusal’s closing share price of HK$5.84 on Tuesday, October 10, the market value of 3 per cent stake is $341 million. The company’s shares fell 2.8 percent in Hong Kong during the day.

Neither Rusal and Onexim Group, which manages Prokhorov’s assets, or  Renova Group, managing Vekselberg’s assets were available for comment.

“Prokhorov has indicated previously that he was willing to sell his stake in Rusal, while Vekselberg might be willing to benefit from Rusal’s share growth this year,” Oleg Petropavlovskiy, an analyst at BCS investment bank said.

The ABB deal is likely to increase the liquidity of Rusal’s shares in Moscow and make it easier for the aluminium giant to get into MSCI Russia Index, Petropavlovskiy said.

The planned listing of En+ will be the first major IPO of a Russian company in London since 2014.  En+ aims to raise US$1.5 billion, of which US$1 billion is expected to be new capital, Reuters reported.