According to reports from British media, aluminium giant U.C. Rusal’s parent company En+ Group is likely to be listed on the London Stock Exchange in November.
The London Telegraph reported yesterday that Oleg Deripaska is planning to list the energy and aluminium company on the Exchange in an effort at raising US$1.5 billion to put towards retiring En+’s US$5 billion in debt.
If launched, the listing would be of the largest Russian company since economic sanctions were levied against the country due to its recent actions in Ukraine. The largest listing of a Russian company to date was Polyus’s dual listing in London and Moscow three months ago, which raised in excess of US$800 million.
According to experts, Deripaska is relying upon the company’s one-two punch of significant Siberian hydropower offerings and Rusal’s low-cost aluminium production will win over investors who are skeptical of investing in Russian enterprises due to global tensions surrounding the country.
The reportage also seconded rumors published last month that energy conglomerate CEFC China Energy Company Limited was considering snapping up En+ stock if and when it was offered. The latest rumors assign a number to the contemplated purchase – US$500 million.
En+ CEO Maxim Sokov expressed optimism in the likely offering, emphasizing the twin advantages his firm offers to potential investors.
“We are very pleased to be listing in London, a universally respected financial centre and a global hub for the energy and metals sectors. We are both the largest private hydro power company globally and the leading aluminium producer outside of China. Demand for both commodities is inexorably rising and, on our platform, intertwined.”
Founded in 2006, En+ is registered in Saint Helier, Jersey, but operates from headquarters in Moscow. The firm employs about 100,000 individuals. In addition to its controlling interest in Rusal, En+ is the parent company of EuroSibEnergo (owner of hydroelectric producer Irkutskenergo), and leading ferromolybdenum producer SMR. The firm also owns aluminium value-added firm En+ Downstream and En+ Coal, which has assets across eastern Siberia and provides coal for En+’s power plants.