Deripaska snubs London over $30bn mining float

United Company Rusal, the Russian aluminium giant run by oligarch Oleg Deripaska, is planning to list in Hong Kong by December in a huge blow to the London Stock Exchange.

London has long been considered the home of the listed mining sector, with BHP Billiton, Rio Tinto and Anglo American among the exchange's big names. Missing out on the world's biggest aluminium producer would be a hit to that reputation, according to industry bankers.

Mining sector sources said that the partial float, which would list between 10 and 20 per cent of the company's shares, could value Rusal at $20-30bn.

Goldman Sachs and Credit Suisse have been lined up as the global co-ordinators for the flotation, which is expected to be marketed in Hong Kong in November. There are likely to be two bookrunners – more junior positions – that are expected to go to BNP Paribas and a Chinese bank.

BNP is one of Rusal's leading lenders, and has sat on the committee that has been restructuring the group's debts. Rusal should complete its restructuring within the next month, allowing it to start marketing a float in November.

Sources said that a secondary listing on Euronext, the Paris-based exchange, is also under consideration. A senior mining figure added that Hong Kong was attractive due to its proximity to mainland China, a major customer.

Aluminium Corporation of China, better known as Chalco, Rusal's major rival, is also listed in Hong Kong. "There is no major aluminium player in London," said one source.

Rusal has long harboured plans to float on a major exchange, and was choosing between a London and Hong Kong until the market collapse frustrated the company.

Oleg Mukhamedshin, Rusal's director of capital markets, said last month that a listing "will be possible in the next 12 to 24 months". The original plan had been to list by the end of this year, a timetable that appears to have been resurrected.

Vera Kurochkina, a Rusal spokeswoman, denied that a decision had been made on a flotation, adding that banks had not been appointed. However, just last month Ms Kurochkina was reported as saying that Rusal was technically ready for a listing.

Mr Deripaska was in the news last week fater General Motors confirmed that it would sell a 55 per cent stake in Opel and Vauxhall to Canadian vehicle parts group Magna International. Gaz, Mr Deripaska's carmaker, is a member of Magna's consortium.

Start your day with The Independent, sign up for daily news emails
Sport
England's women celebrate after their 3rd place play-off win against Germany
Women's World CupFara Williams converts penalty to secure victory and bronze medals
Arts and Entertainment
Ricardo by Edward Sutcliffe, 2014
artPortraits of LA cricketers from notorious suburb go on display
News
newsHillary Clinton comments on viral Humans of New York photo of gay teenager
Arts and Entertainment
The gang rape scene in the Royal Opera’s production of Gioachino Rossini’s Guillaume Tell has caused huge controversy
music
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'