Rusal shareholders argue about buyback

Board of Directors of Rusal will consider the issue of buyback today. Shares bought back on the company's balance sheet are deprived of voting rights and dividends. However, if the securities end up on the balance sheet of the issuer's subsidiary, the stake becomes a quasi-treasury stake, in which case it is voted by the management, which de facto strengthens the position of the controlling shareholder. Sual Partners warned that it intends to use its veto right to prevent such a buyback option.