Rusal Shareholders Rejected SUAL’s Demands for Access to Hedge Data
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An extraordinary meeting of shareholders of the Russian aluminum company Rusal rejected the requirements of Viktor Vekselberg’s company SUAL Partners (controls 25.72% of Rusal) to provide information on the hedge. Earlier, the board of directors of Rusal denied this requirement to SUAL Partners.
The main shareholder of Rusal (57%) is En+ Group.
SUAL Partners required to provide shareholders with information regarding aluminum price hedging transactions in 2021-2022. As a result of metal hedge transactions, Rusal suffered losses of $378 million in 2021 and $382 million in 2022.
32.64% of the votes of the meeting participants were in favor of providing these data, 62.86% were against, follows from the message of Rusal, hosted on the Center for Corporate Information Disclosure portal.
The Board of Directors motivated the refusal by the fact that the documentation on transactions of the company’s subsidiaries with derivatives is confidential, and its provision to an unlimited number of persons may cause harm to the company.
SUAL, seeking access to hedge data, initiated an extraordinary meeting of shareholders and stated that in case of detection of violations in these transactions, it will protect the rights of shareholders and the interests of the company by all available means, reports Interfax.
According to the chairman of the board of directors of Rusal, Bernard Zonneveld, the company periodically hedges metal prices. However, it is necessary to analyze these operations not according to one specific article, he explained in an interview. TASS.
At the end of June, the head of SUAL, Oleg Fomichev, said that SUAL Partners was considering filing a lawsuit against Rusal in connection with a number of transactions. “This applies not only to investments in Braidy and RusHydro, but also deals on hedging aluminum prices, which, judging by the reports, also turned out to be unprofitable,” Mr. Fomichev said.
Read more in his interview with Kommersant “Management acts in the interests of the majority shareholder”.
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