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. Last Updated: 07/27/2016

Norilsk Offers Asset Buyout

Norilsk Nickel offered on Tuesday a share buyout to holders who disagree with a spin-off of its energy assets.

Norilsk plans to hold an extraordinary shareholders meeting Dec. 14 to vote on the spin-off, the company said in a statement. The registrar to participate in the meeting will close on Oct 26.

Norilsk said it would buy out shares at 5,300 rubles ($211.7) per share.

Norilsk announced in May a plan to spin off noncore energy assets this year to create one of the country's largest private energy firms and list it in the first quarter of 2008.

The company has said it plans to spin off power assets as part of the divorce between co-owners, Mikhail Prokhorov and Vladimir Potanin. Prokhorov has stepped down as Norilsk's chief executive and has said he will sell his shares in the company to Potanin. He planned to concentrate on the energy company, which he had previously valued at $10 billion.

But the process of divorce proved to be more complicated than expected. Prokhorov called an extraordinary general shareholders meeting for Oct. 12 in order to win seats on the Norilsk board and to not lose control over the company. Prokhorov said in March that he intended to have a stake of over 50 percent in the new company, which would be spun off on the lines of Norilsk's former gold arm, Polyus Gold.

All Norilsk shareholders will get a stake in the new company on a pro-rata basis.