OREANDA-NEWS. On March 16, 2007 the Board of Directors of MMC Norilsk Nickel reviewed the prospects for the development of the Group’s energy business and elected Denis Morozov as General Director of the Company, reported the press-service of MMC Norilsk Nickel.

On March 10, 2007 the Board of Directors of OJSC OGK-3 summarized the results of the auction for the purchase of additional 18,000,000,000 shares, which is 61% of the current OGK-3 authorized capital and 37,9% of its post-transaction authorized capital. Based on bids analysis the Board of OGK-3 established that the price of one ordinary share would be equaled RUB 4,54 or USD 0,17, which matched the price indicated by Norilsk Nickel in it’s bid. While considering Norilsk Nickel Group’s interest in the additional issue of OGK-3 ordinary registered shares, the Board reviewed fairness opinion prepared by an advisor in connection with the proposed acquisition of new share issue in OGK-3 and possible subsequent mandatory offer to minority shareholders of OGK-3. Having discussed the issue, the Board decided that the Company management should ensure the preparation of mandatory offer to OGK-3 shareholders to purchase their ordinary shares in case the Group’s holding after the placement exceeds 30% of OGK-3 share capital.

The results of the additional shares placement will be announced on March 21, 2007 upon OGK-3 shareholders, who have duly filed their applications, exercise their pre-emptive rights. After the additional share issue and taking into account previous equity stake of Norilsk Nickel Group, it is expected that the Group’s shareholding may reach up to 46.5% of the share capital of OGK-3. The stake may be further increased upon the results of mandatory offer to OGK-3 shareholders to sell their shares to Norilsk Nickel Group.
The Board of Directors has also approved the consolidation of the Group’s energy assets under MMC Norilsk Nickel for the purpose of their consequent spin-off to a separate company, which shares will be distributed among MMC Norilsk Nickel shareholders on a pro rata basis. The Board has further requested the Company management to prepare a detailed reorganization program of the energy assets by the meeting of the Board of Directors scheduled for May 11, 2007.

The Board has also confirmed the intention to exclude assets, which supply energy to the production facilities of MMC Norilsk Nickel at the Taimyr Peninsula, from the reorganization. At the meeting scheduled for May 11, 2007 the Board plans to discuss the development of these energy assets. Due to the large scale of the energy business development and necessity to mobilize the management resources at this direction, Mikhail Prokhorov decided to resign as the General Director of MMC Norilsk Nickel from April 2, 2007 and to focus on further energy business development and other projects. The MMC Norilsk Nickel Board of Directors accepted Mikhail Prokhorov’s resignation and voted unanimously for the appointment of Denis Morozov as a new General Director since April 3, 2007, who is currently Deputy General Director, Member of the Management Board of MMC Norilsk Nickel.

“Mikhail Prokhorov has done a lot for Norilsk Nickel and a whole epoch of major reforms in the Company is closely related to his name. We are thankful to Mr. Prokhorov for the years of selfless work, which resulted  in almost 10 times growth of Norilsk Nickel market capitalization. The Company became one of the global leaders in the metals and mining sector. Under his governance effective management system was introduced and high social and corporate governance standards were reached. In our turn, we’d like to congratulate Denis Morozov, the new General Director, on such high office, and to wish him success in his further work. The team of Norilsk Nickel with Mr. Morozov in charge will have to launch many new projects and continue those, which have already been started including the consolidation of the energy assets. The Board of Directors will render maximum assistance to the new General Director to accomplish the tasks of the Company”, Andrey Klishas, the Chairman of MMC Norilsk Nickel  Board of Directors, concluded at the meeting.