Hong Kong Regulators Probing Rusal Demerger Plan, FT Says
(Bloomberg) -- Hong Kong stock market regulators are examining plans by Russian aluminum producer United Co. Rusal International PJSC to spin off its high-carbon smelters and refiners into a Moscow-listed entity, the Financial Times reported, citing emails it has seen.
The decision to probe the proposed deal by the Hong Kong-listed company followed a complaint raised by London-based hedge fund Odey Asset Management, the report said.
Odey was concerned that an attempt could be made to buy out minority shareholders once the demerger is complete, the report cited unidentified people as saying. The hedge fund holds no shares in Rusal but owns derivatives that give it the option to acquire a stake, according to the FT.
Hong Kong Exchanges and Clearing declined to comment to the FT. Rusal said it was not aware of any investigation by HKEX and that it had yet to publish any information concerning voting arrangements, according to the report. A Rusal spokesman reiterated the comments that were given to the FT. Odey didn’t immediately respond to an emailed request for comment.
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