Usmanov Says Metalloinvest May Raise Norilsk Stake to About 5%

  • Norilsk has `quite a good dividend yield,' billionaire says
  • Iron-ore miner Metalloinvest owned 3.2% in Norilsk at end-June

Russian billionaire Alisher Usmanov said his Metalloinvest Holding Co. may boost its stake in GMK Norilsk Nickel PJSC, the country’s largest miner, to about 5 percent.

“I’d recommend to our management to buy, rather than sell, a stake in Norilsk,” Usmanov said in an interview with state broadcaster Rossiya 24 televised on Monday. “The company has quite a good dividend yield.”

Metalloinvest co-owners including Usmanov bought Norilsk shares in 2008 when they were considering a merger of the two miners. After the holding reached as much as about 5 percent, Metalloinvest started selling shares in 2014, bringing its stake to 3.2 percent as of end-June.

As part of a shareholder accord reached in 2012, Norilsk has agreed to pay out annual dividends equivalent to half its earnings before interest, taxes, depreciation and amortization, or no less than $2 billion.

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