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. Last Updated: 07/27/2016

Norilsk Planning Court Appeal To Block Shareholder Meeting

Norilsk Nickel will appeal in court the decision by Uneximbank, one of its major shareholders, to convene an extraordinary shareholders' meeting, a top company official said Monday.


Company management will boycott the meeting, called for Feb. 2, if it does take place, and may challenge the results of the auction which gave Uneximbank 38 percent of the company, said Norilsk Nickel finance director Vladimir Mekhanik.


Uneximbank violated company law and the articles of RAO Norilsk Nickel by convening the extraordinary shareholders' meeting, Mekhanik said.


Alfred Kokh, first deputy chairman of the State Property Committee and a board member of Norilsk, said Friday that Uneximbank's actions were legal.


Uneximbank became became a nominee shareholder of a 38 percent stake in Norilsk Nickel last year after winning an auction under the government's loans-for-shares program.


The bank published an announcement last week calling for the meeting. The agenda includes changes in the board and articles of Norilsk Nickel, which produces nearly one-fifth of the world's nickel and cobalt and 42 percent of the global platinum supply.


Mekhanik said Norilsk Nickel top management would not attend the meeting.