United Company RUSAL Plc: Continuing Connected Transactions Update on Long Term Electricity Supply Contracts and Short-Term E&C Contract

29-Nov-2017 Intellasia | BusinessWire | 9:30 PM Print This Post

HONG KONG–(BUSINESS WIRE)–Regulatory News:

United Company RUSAL Plc (Paris:RUSAL) (Paris:RUAL):

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of
Hong Kong Limited take no responsibility for the contents of this
announcement, make no representation as to its accuracy or completeness
and expressly disclaim any liability whatsoever for any loss howsoever
arising from or in reliance upon the whole or any part of the contents
of this announcement.

UNITED COMPANY RUSAL PLC
(Incorporated under the laws of
Jersey with limited liability)

(Stock Code: 486)

CONTINUING CONNECTED TRANSACTIONS
UPDATE ON LONG TERM
ELECTRICITY SUPPLY

CONTRACTS AND SHORT-TERM E&C CONTRACT

Reference is made to the announcement of the Company dated 19 September
2016 and the circular of the Company dated 11 October 2016 (the “Circular”)
in relation to, among others, the long-term electricity supply contracts
between members of the Group and associates of En+ and the short-term
E&C Contract with duration not exceeding one year between members of the
Group and associates of En+. Unless otherwise defined herein, the
capitalized terms used in this announcement shall have the same meanings
as those defined in the Circular.

As previously disclosed, on 28 October 2016, BrAZ (a subsidiary of the
Company) and Irkutskenergo (an associate of En+, the controlling
shareholder of the Company) entered into two long-term electricity
purchase contracts pursuant to which BrAZ agreed to purchase electricity
from Irkutskenergo for a period of ten years from 1 January 2017 to 31
December 2026 (the “Original Long-Term Electricity Supply Contracts”).
Furthermore, as previously disclosed, RUSAL Novokuznetsk entered into,
from time to time as part of its ordinary course of business, short-term
E&C Contract with duration not exceeding one year with Irkutskenergo
(the “Original Short-Term E&C Contract”) (the Original
Long-Term Electricity Supply Contracts, together with the Original
Short-Term E&C Contract, referred to as the “Original Contracts”).
The principal terms of the Original Contracts are set out in the
Circular, and the entering into of the Original Long-Term Electricity
Supply Contracts and the proposed annual caps for the E&C Contracts with
En+’s Associates for the three years ending 31 December 2017, 2018 and
2019 (the “Annual Caps”) were duly approved by the Shareholders
at the EGM of the Company held on 28 October 2016.

As part of a reorganization of the En+ group companies (the “En+ Group”)
and for the purpose of replacing Irkutskenergo in the Original Contracts
with another subsidiary of En+ for that reorganization, the Company
announces that on 28 November 2017, the Original Contracts with
Irkutskenergo have been terminated and new replacement E&C Contracts
have been entered into (the “New Contracts”) between the
respective members of the Group which were parties to the Original
Contracts and LLC “EuroSibEnergo-Hydrogeneration” (“EuroSibEnergo-Hydrogeneration”,
a wholly-owned subsidiary of En+), as the seller (the “Replacement”).
The term of the New Contracts will cover the remaining term of the
Original Contracts.

The same set of equipment used by Irkutskenergo will be used by
EuroSibEnergo-Hydrogeneration for production of electricity after the
Replacement at the same site where the equipment is currently situated
and thus it is expected that the nature, quality, consistency and
reliability of the electricity supplied will remain substantially the
same after the Replacement.

All other material terms and conditions under the New Contacts remain
the same as the material terms and conditions under the Original
Contracts after the Replacement, including those as set out in the
Circular provided to the Shareholders such as the pricing formula,
annual contractual amount of electricity to be supplied and payment
timeframe, guarantee provided by the seller´s parent company and the
Annual Caps.

By Order of the Board of Directors of
United Company RUSAL
Plc

Aby Wong Po Ying
Company Secretary

29 November 2017

As at the date of this announcement, the executive Directors are Mr.
Oleg Deripaska, Mr. Vladislav Soloviev and Mr. Siegfried Wolf, the
non-executive Directors are Mr. Maxim Sokov, Mr. Dmitry Afanasiev, Mr.
Ivan Glasenberg, Mr. Maksim Goldman, Ms. Gulzhan Moldazhanova, Mr.
Daniel Lesin Wolfe, Ms. Olga Mashkovskaya, Ms. Ekaterina Nikitina and
Mr. Marco Musetti, and the independent non-executive Directors are Mr.
Matthias Warnig (Chairman), Mr. Philip Lader, Dr. Elsie Leung Oi-sie,
Mr. Mark Garber, Mr. Dmitry Vasiliev and Mr. Bernard Zonneveld.

All announcements and press releases published by the Company are
available on its website under the links
http://www.rusal.ru/en/investors/hkse/,
http://rusal.ru/investors/info/moex/
and
http://www.rusal.ru/en/press-center/press-releases.aspx,
respectively.

Contacts

United Company RUSAL Plc

 


Category: BusinessWire, PRAsia

Print This Post

Comments are closed.