Norilsk Nickel's largest investor Interros objects to Rusal's dividend claim
Norilsk Nickel's largest shareholder Interros said on Thursday it had filed an objection to a lawsuit in London brought by fellow shareholder Rusal, arguing that Rusal is trying to maximize dividends even if it is not in Norilsk Nickel's interests. The long-running dispute between Norilsk Nickel CEO Vladimir Potanin, who through Interros owns a 37% stake, and aluminum giant Rusal, which owns 26.4%, escalated at the end of 2022 when a ten-year shareholders' agreement protecting dividend payments by Norilsk Nickel.
Norilsk Nickel is the world's largest producer of palladium, which automakers use in engine exhaust to reduce emissions, and a major producer of refined nickel used in metallurgy and electric vehicle battery production.
Rusal first filed the lawsuit in 2022, alleging Potanin violated their shareholders agreement. It later added more claims, including alleging that Nornickel's employee incentive scheme benefited Potanin at the expense of other shareholders.
Interros reiterated that it believes the claims are unfounded and said in a statement on Thursday that that Rusal is trying to influence Norilsk Nickel's dividend policy to solve its own problems.
In an emailed comment, Rusal said it believes Interros is trying to divert attention from the real essence of the dispute, and will further consider the need to respond to Interros' statement on Thursday.
“Rusal has always acted and continues to act as a responsible shareholder of Norilsk Nickel,” Rusal said.
Norilsk Nickel paid about 140 billion rubles ($1.37 billion) in dividends for the first nine months of 2023 at 915.33 rubles per share. Last year, the company decided not to pay annual dividends and has not yet made a decision on new payments this year.
Interros said that Rusal's lawsuit puts Norilsk Nickel in a difficult position in the current geopolitical conditions , since it requires the company to disclose confidential information.
Rusal uses dividends from Norilsk Nickel to service its debt. Rusal's net debt at the end of the first half of this year amounted to $6.4 billion.