Rusal Considers $156 Million Share Buyback Amid Board Deliberations

Russian aluminium giant Rusal is considering a share buyback valued at approximately 15 billion rubles ($156 million), following a review by the company's board of directors. The board has begun a preliminary assessment of the potential buyback, noting that it could be favorable for shareholders overall. However, no final decision has been made, and the buyback will require approvals from shareholders, regulators, and creditors. Rusal emphasized that there is no certainty these approvals will be obtained.

"There can be no assurance that the share buyback will materialize or ultimately be implemented," the company warned.

Based on the closing price of shares on the exchanges where Rusal is listed, the potential buyback could account for around 3% of the company's capital. Rusal shares are traded in Hong Kong and Moscow.

Rusal is controlled by En+ Group, whose largest shareholder is Oleg Deripaska, holding a 44.95% stake but with limited voting rights of 35%. En+ owns 56.88% of Rusal, while Sual Partners, controlled by Viktor Vekselberg and his partners, holds 25.52%. The remaining 17.6% is in free float.

Sual Partners has notified En+ of its intention to use its veto right, as per the 2010 shareholders' agreement, to block the share buyback proposal. The agreement allows Sual Partners to veto key decisions requiring more than 75% of shareholder votes. Previously, Sual had unsuccessfully pushed for dividend payments, which were last distributed for the first half of 2022.

The buyback proposal emerged during discussions of dividend payments for 2023, according to sources cited by Interfax.