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Duo sell down Rusal stakes

Kitco News

HONG KONG, Oct 12 (IFR) - Russian tycoons Mikhail Prokhorov and Viktor Vekselberg have raised a total of HK$2.46bn (US$315m) from sell-downs of their interests in dual-listed Rusal.

The Russian aluminium producer is listed in Hong Kong and Moscow.

The offer of 456m shares, or about 3% of Rusal's equity capital, was priced at the bottom of an indicative price range of HK$5.40-$5.55 each. The final price represents a discount of 7.5% to the pre-deal spot.

The deal was well covered with about 70 investors participating. Allocation was very concentrated as the top 10 investors took about two-thirds of the shares. There was mixed demand from international and Russian investors.

Prokhorov sold 0.7% in Rusal and Vekselberg sold 2.3%, reducing their stakes in the company to 6.0% and 20.5%, respectively.

There is a 90-day lock-up on the pair. Goldman Sachs and Renaissance Capital were the joint bookrunners.

(Reporting by Fiona Lau)

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