UC RUSAL enters into purchase agreement with NORINCO concerning share acquisition in Shenzhen North Investments28 November 2011 | By ALUMINIUM in Allgemein, Exhibitors, Global markets
UC RUSAL, the world’s largest aluminium producer, announced the execution of a share purchase agreement with China North Industries Corporation (“NORINCO”) under which it has agreed to purchase a 33% stake in a company Shenzhen North Investments Corporation Limited (“Shenzhen North Investments”), a trading affiliate of NORINCO specializing in aluminium, alloys and other non-ferrous metals on their website on November 25.
This acquisition will enable RUSAL to take an active part in the strategic and operational management of Shenzhen North Investments. The completion of the share purchase is due to occur before 31 January 2012 and is subject to a number of conditions precedent.
In addition, the Company has entered into a shareholders agreement with NORINCO, under which RUSAL is entitled to nominate two representatives for appointment to the Board of Directors of Shenzhen North Investments, one of whom would be appointed as chairman of Shenzhen North Investments’ Board of Directors. In addition, the Company is entitled to appoint a Vice-Chairman of the Board of Supervisors, a Deputy General Manager and a deputy Chief Financial Officer of Shenzhen North Investments.
The acquisition of a stake in Shenzhen North Investments, a Chinese trading company with more than 15 years experience is expected enhance the effective promotion of RUSAL’s products in the Chinese market.
Vladislav Soloviev, UC RUSAL’s First Deputy CEO, said: “RUSAL is strengthening ties with Asia. We have completed registration of two RUSAL brands at the Shanghai Futures Exchange, which will undoubtedly contribute to a more efficient promotion of our products in China. Moreover, our investor base in Asia is growing as investors have more confidence in the Company. Completion of the deal with NORINCO represents a good opportunity to develop mutually beneficial cooperation with one of the fastest-developing economies in the world. Growing urbanization and industrial development will continue to drive China’s dominant role in the global aluminium consumption, and RUSAL, as the world’s largest producer of the light metal, is ready to meet this demand.”
For more information: http://www.rusal.ru/en/
RUSAL is exhibiting at ALUMINIUM 2012 in Hall 11, booth 11K10.