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MOSCOW, April 9 (Reuters) – Nornickel GMKN.MM will minimise its remaining dividend for 2020 to fund deliberate funding in manufacturing development and enhancing its environmental footprint, the Russian metals producer stated on Friday, citing a advice from its board of administrators.
The advice is consistent with a current proposal by Nornickel’s largest shareholder – Interros Holding, managed by businessman and Nornickel chief govt Vladimir Potanin that .
The board really helpful the ultimate dividend of 1,021.22 roubles ($13.25) per share, or about $2.1 billion, it stated in a press release. Interros and aluminium producer Rusal 0486.HK have a long-term settlement, which expires on Jan. 1, 2023 and means that the miner may have really helpful the ultimate dividend of $3.5 billion for 2020 along with its 9-month fee of $1.2 billion.
“We think about this as an necessary transfer to assist Nornickel’s monetary stability through the energetic part of its new funding cycle,” Gareth Penny, Nornickel board chairman, stated within the assertion.
Nornickel additionally stated its main shareholders had reached an settlement to suggest a $2 billion buyback of Nornickel shares by the tip of 2021 to assist the miner’s shares.
Nornickel’s second largest shareholder – aluminium producer Rusal which depends on Nornickel’s dividend funds in tough years – stated in a separate assertion that it was happy with the choice.
“It was the best choice in the meanwhile, considering all of the specifics of the interval, and we’re happy that the views of the Board members concurred,” Rusal stated.
(Reporting by Polina Devitt and Anastasia Lyrchikova; modifying by Jason Neely and Emelia Sithole-Matarise)
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