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. Last Updated: 07/27/2016

Norilsk Sure Share Swap Will Be Approved

Metals giant Norilsk Nickel is confident shareholders will approve its restructuring plan next spring, its officials said Friday.

Under the restructuring, the Norilsk Mining Co., or NGK, core production unit is to become the main traded share of the company.

Analysts say the share swap will mean minority shareholders, stakes in the parent company are diluted by 11.5 percent.

"So far, we have only one shareholder who has officially demonstrated he doesn't like the plan," said Alexei Zhdanov, deputy general director of Norilsk Nickel, at a news conference.

Nicholas Jordan, managing director of Deutsche Bank, which has advised Norilsk Nickel on the restructure, said the speedy completion of conversion "is in the interest of all shareholders, including minority ones."

The Federal Securities Commission is more skeptical. It has been investigating the restructuring process after numerous appeals from Norilsk's minority shareholders.

On Thursday, Igor Kostikov, head of the FSC, said the company had failed to provide all the documents the FSC requested. He said trading in Norilsk's shares could be suspended if Norilsk did not comply with its request. Norilsk provided the remaining documentation shortly after the statement.

The FSC verdict is expected to be made known next week.