Russia's Rusal mulls selling assets

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Rusal Reuters.

Moscow - Rusal, the world's largest aluminium producer, is considering selling about $1 billion (R10.7 billion) worth of non-core assets, including its foil business in Russia, BCS financial group analysts said.

Other assets that could be sold include stakes in the Alscon aluminium smelter in Nigeria and the Bogatyr coal company in Kazakhstan, the analysts said in a research note to clients after meeting Rusal's management last week.

Rusal has been struggling to manage $10.3 billion of net debt due to a slump in aluminium prices amid a supply glut stoked by huge production growth in China.

The Russian firm recently finalised a refinancing deal with creditors, buying time to turn itself around.

The company is considering several options related to its non-core assets, but no decisions have been taken yet, Rusal told Reuters.

The BCS analysts said sale talks were at an advanced stage.

Shares in Rusal, owned by Russian tycoon Oleg Deripaska, have jumped 75 percent in Hong Kong since the start of 2014 thanks to a rebound in aluminium prices and a spike in nickel prices.

Rusal owns a 28 percent stake in Russia's Norilsk Nickel. - Reuters



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