OREANDA-NEWS. On March 16, 2007 the Board of Directors of MMC Norilsk Nickel reviewed the prospects for the development of the Group’s energy business, the press service of “Norilsk Nickel” informed.

On March 10, 2007 the Board of Directors of OJSC OGK-3 summarized the results of the auction for the purchase of additional 18,000,000,000 shares, which is 61% of the current OGK-3 authorized capital and 37.9% of its post-transaction authorized capital.

Based on bids analysis the Board of OGK-3 established that the price of one ordinary share would be equaled RUB 4.54 or USD 0.17, which matched the price indicated by Norilsk Nickel in it’s bid.
 
While considering Norilsk Nickel Group’s interest in the additional issue of OGK-3 ordinary registered shares, the Board reviewed fairness opinion prepared by an advisor in connection with the proposed acquisition of new share issue in OGK-3 and possible subsequent mandatory offer to minority shareholders of OGK-3.

Having discussed the issue, the Board decided that the Company management should ensure the preparation of mandatory offer to OGK-3 shareholders to purchase their ordinary shares in case the Group’s holding after the placement exceeds 30% of OGK-3 share capital. 

The results of the additional shares placement will be announced on March 21, 2007 upon OGK-3 shareholders, who have duly filed their applications, exercise their pre-emptive rights.

After the additional share issue and taking into account previous equity stake of Norilsk Nickel Group, it is expected that the Group’s shareholding may reach up to 46.5% of the share capital of OGK-3. The stake may be further increased upon the results of mandatory offer to OGK-3 shareholders to sell their shares to Norilsk Nickel Group.

The Board of Directors has also approved the consolidation of the Group’s energy assets under MMC Norilsk Nickel for the purpose of their consequent spin-off to a separate company, which shares will be distributed among MMC Norilsk Nickel shareholders on a pro rata basis. The Board has further requested the Company management to prepare a detailed reorganization program of the energy assets by the meeting of the Board of Directors scheduled for May 11, 2007.

The Board has also confirmed the intention to exclude assets, which supply energy to the production facilities of MMC Norilsk Nickel at the Taimyr Peninsula, from the reorganization. At the meeting scheduled for May 11, 2007 the Board plans to discuss the development of these energy assets.