Rusal
Founded in March 2007, the United Company is a result of the merger of RUSAL, SUAL, and the alumina assets of Glencore, which created the largest aluminium and alumina producer in the world.
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Rusal seeks investments from China and Singapore government funds - report
The Hong Kong Economic Journal reported that Russian oligarch Oleg Deripaska’s aluminium producer United Company RUSAL is holding negotiations with China Investment Corp (CIC) and Temasek Holdings Pte to partake in the company’s Hong Kong IPO (initial public offering).
RUSAL is looking to offer shares representing 10% of its capital on the Hong Kong Stock Exchange, thus becoming the first Russian company to be listed in Hong Kong. Both the exchange and the state backed wealth funds are switching focus to commodities, while RUSAL is reportedly looking for a higher valuation by listing in Hong Kong, according to a report in Wall Street Journal.
The Russian aluminium giant, which could be valued as high as US$30 billion in the IPO, has had a hard time paying off its debts since the financial crisis kicked in last year, considerably weakening commodity markets and pushing down the value of companies like RUSAL. Obtaining a Hong Kong quote is contingent on restructuring the company’s US$7.4 billion debts with foreign banks with RUSALclaiming to have settled the matter with half of these banks.
RUSAL intends to continue negotiations with the rest of its foreign lenders after agreeing on new terms with Russian banks and its major shareholder Onexim Group.
RUSAL is the world’s largest aluminium producer, accounting for 12.5% of global aluminium output. The company has 90,000 employees and operates in 17 countries.
