UC RUSAL completes acquisition of strategic stake in Norilsk Nickel from ONEXIM Group

UC RUSAL announces that it has completed the acquisition of a 25% plus one share stake in Norilsk Nickel from ONEXIM Group.

Commenting on the deal, Alexander Bulygin, CEO, United Company RUSAL, said:

“We are delighted that our acquisition of 25% plus one share of Norilsk Nickel has been successfully completed. We have become a shareholder in one of the world’s largest producers of nickel, palladium, copper and platinum and have laid a solid foundation for the development of UC RUSAL as a diversified metals and mining corporation with huge growth potential. UC RUSAL has a positive track record of managing metals assets worldwide and intends to play an active role in implementing Norilsk Nickel’s development strategy. We will establish our relationship with the company’s management and other shareholders based on the principles of partnership and contribute to the growth of the company’s value in the interests of all shareholders.”

UC RUSAL has nominated four candidates to the Board of Directors of Norilsk Nickel – Victor Vekselberg, Oleg Deripaska and Alexander Bulygin, as well as Tye Burt, as an independent director. The knowledge, experience and professionalism of the nominees will contribute to the adherence to best practice corporate governance and observance of the rights and interests of all shareholders. The election of these candidates to the Board of Directors will be considered at the annual shareholders meeting of Norilsk Nickel in June 2008.

ONEXIM has received, under the terms of the deal, a 14% stake in UC RUSAL and a cash component. ONEXIM will also gain representation on the UC RUSAL Board of Directors. The stakes of other UC RUSAL shareholders are changed proportionally.

The acquisition of a stake in Norilsk Nickel by UC RUSAL has been approved by the antimonopoly authorities of seven countries, including the RF Antimonopoly Service.

The cash component of the deal has been supported by a syndicated loan provided by ABN Amro, Barclays Capital, BNP Paribas, Calyon, Credit Suisse, Goldman Sachs, ING, Merrill Lynch, Morgan Stanley, Natixis and UniCredit Group.