Board of Directors approves shareholder value enhancement program
MOSCOW, December 28, 2010 – The Board of Directors of MMC Norilsk Nickel (“MMC Norilsk Nickel” or the “Company”) has approved today a Shareholder Value Enhancement Program (the “Program”).
The key rationale for launching this new Program is as follows:
The Board of Directors of the Company believes that successful implementation of the Program coupled with the simultaneous implementation of its production strategy, would deliver significant value and return capital to its shareholders both in the medium and long-term.
The Program will be based on the following measures:
The first phase of the Program may include a plan to return cash to shareholders through buyback tender offers and open market purchases of the Company’s shares and/or ADRs over the next 12 months in the aggregate amount of up to $4.5 billion. The exact timing and size of tender offers or open market purchases, if any, will depend on market conditions and other factors and will be announced in accordance with applicable legal requirements. No assurance can be given that the Company will implement any tender offers or open market purchases.
“Norilsk Nickel is determined to deliver value to its shareholders. We believe that Norilsk Nickel offers a great potential to its investors”.
ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of the Company’s group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, USA, Australia, Botswana and South Africa.
The above statement is not an offer to buy or the solicitation of an offer to sell any securities of MMC Norilsk Nickel. The above statement is not an acquisition offer, nor is it an invitation to start making sales offers for any of MMC Norilsk Nickel’s stocks. The acquisition procedures mentioned in the above statement have yet to begin. As and when the acquisition process commences, if at all, all shareholders will receive the relevant documentation including any share acquisition statements, application forms, letters of transmittal, information memoranda and any other application and related documents. Shareholders should read the information memorandum describing any such acquisition procedures and other related documents if and when they become available.
This communication is only addressed to and is only directed at persons in member states of the European Economic Area (the “EEA”) who are “qualified investors” within the meaning of Article 2.1(e) of the Prospectus Directive (Directive 2003/71/EC) (“Qualified Investors”). In addition, in the United Kingdom, this document is only addressed to and is only directed at Qualified Investors who (i) also have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) fall within Article 49(2)(a) to (d) of the Order, or (iii) are persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). Any investment activity in connection with the ADRs will be engaged in only with, (i) in the United Kingdom, relevant persons, and (ii) in any member state of the EEA (other than the United Kingdom), Qualified Investors. Persons other than relevant persons and other Qualified Investors should not act or rely on this document or any of its contents.
Certain statements in this communication are not historical facts and are forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. Achieving the targets set forth above will depend on many factors and contingencies, many of which are outside of the company’s control. MMC Norilsk Nickel does not undertake any obligation to update or revise any of the forward-looking statements contained in this statement.