Norilsk Nickel management proposes to allocate $1.5 billion for dividends – RBC

MOSCOW, Jan 21 (Reuters) – Norilsk Nickel’s management, led by the company’s largest shareholder Vladimir Potanin, has proposed cutting its 2022 dividend to $1.5 billion after $6.3 billion paid in 2021, RBC reported on Saturday, citing to three sources close to the board of directors of Norilsk Nickel.

Such a proposal was made at a meeting of the board of directors on December 15, writes RBC. Then the board of directors approved the company’s budget for 2023, including a 10% increase in capital expenditures to $4.7 billion.

According to all three sources of RBC, management justified the need for a significant reduction in dividends with a large investment program.

Other shareholders of Norilsk Nickel, including Rusal, took the idea of ​​cutting dividends “peacefully”, one of the sources said.

Potanin owns 37% of Norilsk Nickel through Interros holding, Rusal owns another 26.39%, and Abramovich owns about 4%.

The final decision on dividends has not yet been made and is expected in March-April, when the board of directors forms a recommendation for the shareholders’ meeting, two sources told RBC.

“The Board of Directors decided that the amount of dividends will be determined after the closing of the financial statements for a difficult 2022, focusing on the company’s current dividend policy,” RBC quotes Elena Cashless.

The current dividend policy adopted by Norilsk Nickel in 2016 provides for the payment of dividends to shareholders in the amount of at least 30% of EBITDA.

Representatives of Interros Vladimir Potanin and Norilsk Nickel declined to comment on RBC. (Moscow bureau)

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