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
TRANSPORTATION CONTRACTS,
HEAT SUPPLY CONTRACTS AND
REPAIR SERVICES CONTRACTS
Reference is made to the announcements of the Company dated 29 December 2017, 19 January 2018 and 2 February 2018 in relation to the Previously Disclosed Transportation Contracts, the announcements of the Company dated 29 December 2017, 2 February 2018, 28 December 2018 and 30 August 2019 in relation to the Previously Disclosed Heat Supply Contracts and the announcements of the Company dated 2 March 2018 and 24 December 2019 in relation to the Previously Disclosed Repair Services Contracts.
The Company announces that members of the Group have entered into/will enter into contracts with associates of En+, pursuant to which the associates of En+ agreed to provide transportation services to the members of the Group (the "New Transportation Contracts").
The Company further announces that members of the Group will enter into contracts with associates of En+, pursuant to which the associates of En+ agreed to supply heat energy to members of the Group (the "New Heat Supply Contracts").
The Company further announces that members of the Group have entered into/will enter into contracts with associates of En+, pursuant to which the associates of En+ agreed to supply repair services to members of the Group (the "New Repair Services Contracts").
− 1 −
THE NEW TRANSPORTATION CONTRACTS
Reference is made to the announcements of the Company dated 29 December 2017, 19 January 2018 and 2 February 2018 in relation to the Previously Disclosed Transportation Contracts.
The Company announces that members of the Group have entered into/will enter into the New Transportation Contracts with major terms set out below:
Estimated | ||||||||
consideration | ||||||||
payable | ||||||||
for the | ||||||||
year | ||||||||
ending 31 | ||||||||
December | ||||||||
Customer | 2020 | |||||||
Date of the | excluding | Scheduled | ||||||
(member of the | Service provider | VAT | termination | |||||
contract | Group) | (associate of En+) | Service | (USD) | date | Payment terms | ||
1 | 31 December | RUSAL | OVE | Services | 4,199,911 | Up to 31 | Payment is made | |
2019 | Sayanogorsk JSC | for the | (Note 1) | December | within 10 working | |||
transportation | 2020. | days from the date | ||||||
and | of receipt of the | |||||||
provision | invoice. | |||||||
of railway | ||||||||
transport | ||||||||
services | ||||||||
2 | 31 December | JSC "RUSAL | OVE | Services | 24,458 | Up to 31 | Payment is made | |
2019 | SAYANAL" | for the | (Note 2) | December | within 10 days after | |||
transportation | 2020. | receipt of the | ||||||
and | invoice. | |||||||
provision | If neither | |||||||
of cargo | party | |||||||
forwarding | declares its | |||||||
intention to | ||||||||
terminate the | ||||||||
contract one | ||||||||
month before | ||||||||
its expiration | ||||||||
date, the | ||||||||
contract is | ||||||||
considered | ||||||||
to be | ||||||||
extended for | ||||||||
each | ||||||||
subsequent | ||||||||
calendar | ||||||||
year on the | ||||||||
same terms, | ||||||||
and the total | ||||||||
term of the | ||||||||
contract | ||||||||
cannot be | ||||||||
longer than | ||||||||
three years. | ||||||||
3 | 1 January 2020 | RUSAL | "KraMZ" Ltd. | Cleaning | 35,901 | Up to 31 | Payment is made | |
Krasnoyarsk JSC | of wagons | (Note 3) | December | monthly within 30 | ||||
2020. | days from the date | |||||||
of signing of the act | ||||||||
of the rendered | ||||||||
services. | ||||||||
4 | 27 December | JSC «Kremniy» | Limited Liability | Transportation | 14,029 | Up to 31 | Payment is made | |
2019 | Company | services | (Note 4) | December | within 60 days after | |||
"KraMZ-Auto" | 2020. | receiving the | ||||||
invoice. | ||||||||
5 | 27 December | LLC «SUAL-PM» | Limited Liability | Transportation | 25,914 | Up to 31 | Payment is made | |
2019 | Company | services | (Note 5) | December | within 10 days after | |||
"KraMZ-Auto" | 2020. | receiving the | ||||||
invoice. | ||||||||
Total estimated | 4,300,213 | |||||||
consideration | ||||||||
payable (USD) |
− 2 −
Notes:
- The service fee is calculated by multiplying the weight of cargos, tariff for transportation (subject to state regulation) and the distance (being 58 kilometres).
- The basis of calculation is determined by the demand schedules for transportation services: the estimated demand is 10,860 tons and the distance is 58 kilometres.
- The basis of calculation is determined by the price for the services: shunting work of the locomotive - up to USD32.29/hour, and the delivery of goods in cars - up to USD0.48/ton.
- The basis of calculation is determined by the price for planned services (between USD8 to USD41 per machine hour).
- The basis of calculation is determined by the price for planned services (between USD14 to USD36 per machine hour).
The consideration under the New Transportation Contracts is to be paid in cash via bank transfer or by off-setting reciprocal obligations.
THE ANNUAL AGGREGATE TRANSACTION AMOUNT
Pursuant to Rule 14A.81 of the Listing Rules, the continuing connected transactions contemplated under the New Transportation Contracts and the Previously Disclosed Transportation Contracts should be aggregated for the financial year ending 31 December 2020 as they were entered into by members of the Group with associates of En+, and the subject matter of each contract relates to the provision of transportation services by the associates of En+ to the Group.
The annual aggregate transaction amounts that are payable by the Group to the associates of En+ under the New Transportation Contracts and the Previously Disclosed Transportation Contracts for the financial year ending 31 December 2020 is estimated to be approximately USD20.467 million.
For the contracts stated in items 1 and 2 of the table above, as OVE owns the only railway track section which is required for the transportation services, the relevant New Transportation Contracts were entered into. For the contracts stated in items 3 to 5 of the table above, in accordance with the Company's procurement policies and using tools such as the Company's procurement portal, an open competitive selection was held by publishing an invitation to participate in the selection on the Company's website. For the contract stated in item 3, the service provider was the only one who offered services and the Company entered into the New Transportation Contract with the service provider. For the contracts stated in items 4 and 5, the Company's procurement managers, in line with the best-in-class experience and know-how of the
− 3 −
Company's procurement policies, with approval from the Company's bidding committee chose the contractor offering the best terms and conditions (the contractor offered the lowest price and was able to provide all necessary services) and then entered into the contract with the chosen contractor.
The contract price of the New Transportation Contracts has been arrived at after arm's length negotiation with reference to the market price and on terms no less favourable than those prevailing in the Russian market for transportation services of the same type and quality and those offered by the associate of En+ to independent third parties. The annual aggregate transaction amount is derived from the total contract price under the New Transportation Contracts, which was based on the need of transportation services by the Group for the relevant year.
REASONS FOR AND BENEFITS OF THE TRANSACTIONS
The New Transportation Contracts were entered into for the purpose of transportation. The Company considers that the transactions contemplated under the New Transportation Contracts are for the benefit of the Company, as the services provided are required in the production process of the Group and the service provider is capable of meeting the Group's transportation needs.
The Directors (including the independent non-executive Directors) consider that the New Transportation Contracts are on normal commercial terms which are fair and reasonable and the transactions contemplated under the New Transportation Contracts are in the ordinary and usual course of business of the Group and in the interests of the Company and its shareholders as a whole.
None of the Directors has a material interest in the transactions contemplated under the New Transportation Contracts, save for Mr. Christopher Burnham and Mr. Nick Jordan who are directors of En+, Mr. Vyacheslav Solomin, who is the chief operating officer of En+, and Mr. Vladimir Kolmogorov, who is the first deputy chief executive officer for technical policy of En+, being the holding company of each of OVE, "KraMZ" Ltd. and Limited Liability Company "KraMZ-Auto". Mr. Vladimir Kolmogorov is also the head of technical supervision of JSC EuroSibEnergo, a company which is owned by En+. Accordingly, Mr. Christopher Burnham, Mr. Nick Jordan, Mr. Vyacheslav Solomin and Mr. Vladimir Kolmogorov did not vote on the Board resolution approving the New Transportation Contracts.
− 4 −
LISTING RULES IMPLICATIONS
The ultimate beneficial owner of each of Limited Liability Company "KraMZ-Auto" and "KraMZ" Ltd. is En+, which holds more than 90% of the issued share capital of those entities. The ultimate beneficial owner of OVE is En+, which holds more than 60% of the issued share capital of this entity. There is no other shareholder who holds 25% or more of the issued share capital of OVE.
Each of OVE, "KraMZ" Ltd. and Limited Liability Company "KraMZ-Auto" is an indirect subsidiary of En+, and is therefore an associate of En+, which in turn is a substantial shareholder of the Company. Accordingly, each of OVE, "KraMZ" Ltd. and Limited Liability Company "KraMZ-Auto" is a connected person of the Company under the Listing Rules.
Accordingly, the transactions contemplated under the New Transportation Contracts constitute continuing connected transactions of the Company.
The estimated annual aggregate transaction amount of the continuing connected transactions under the New Transportation Contracts and the Previously Disclosed Transportation Contracts for the financial year ending 31 December 2020 is more than 0.1% but less than 5% under the applicable percentage ratios. Accordingly, pursuant to Rule 14A.76 of the Listing Rules, the transactions contemplated under these contracts are only subject to the announcement requirements set out in Rules 14A.35 and 14A.68, the annual review requirements set out in Rules 14A.49, 14A.55 to 14A.59, 14A.71 and 14A.72 and the requirements set out in Rules 14A.34 and 14A.50 to 14A.54 of the Listing Rules. These transactions are exempt from the circular and shareholders' approval requirements under Chapter 14A of the Listing Rules.
Details of the New Transportation Contracts will be included in the relevant annual report and accounts of the Company in accordance with Rule 14A.71 of the Listing Rules where appropriate.
THE NEW HEAT SUPPLY CONTRACTS
Reference is made to the announcements of the Company dated 29 December 2017, 2 February 2018, 28 December 2018 and 30 August 2019 in relation to the Previously Disclosed Heat Supply Contracts.
− 5 −
The Company announces that members of the Group will enter into the New Heat Supply Contracts, details of which are set out below:
Estimated | ||||||||
consideration | ||||||||
Estimated | payable for each | |||||||
amount of heat | year ending 31 | |||||||
Purchaser | Supplier | to be supplied | December | |||||
Date of the | (member of | (associate of | Term of | for each year | excluding VAT | |||
contract | the Group) | En+) | contract | Form of heat | (approximate) | (USD) | Payment terms | |
1 | 31 December | RUSAL | Baykalenergo | Up to 31 | Thermal energy | 428 Gcal | 2020:15,443 | Payment to be made |
2019 | Sayanogorsk | JSC | December | in hot water to | monthly no later than the | |||
JSC | 2020 | provide heating | (Note 1) | 10th day of the month | ||||
garage | following the reporting | |||||||
period. | ||||||||
2 | 31 December | RUSAL | Khakass | Up to 31 | Thermal energy | Heat: | Heat: | First payment (85% of the |
2019 | Sayanogorsk | Municipal | December | for industrial, | 340,137 Gcal | 2020: 4,553,676 | total amount of thermal | |
JSC | Systems LLC | 2020 | administrative | energy) shall be paid no | ||||
and domestic | Chemical purified | Chemical purified | later than the 20th of the | |||||
facilities on the | water (coolant): | water (coolant): | month of the current billing | |||||
industrial site | 1,350,000 m3 | 2020: 170,058 | period, based on the | |||||
of the plant | (Note 2) | invoice. | ||||||
Second payment (the | ||||||||
difference between the | ||||||||
quantity of thermal energy | ||||||||
actually received based on | ||||||||
readings of metering | ||||||||
devices or by calculation in | ||||||||
case of absence of metering | ||||||||
devices, and the amount | ||||||||
paid by the purchaser) shall | ||||||||
be paid no later than the | ||||||||
10th day of the month | ||||||||
following the billing period. | ||||||||
3 | 31 December | RUSAL | Baykalenergo | Up to 31 | Thermal energy | Heat: | Heat: | Payment is made monthly |
2019 | Sayanogorsk | JSC | December | in hot water for | 4,213 Gcal | 2020: 151,999 | no later than the 10th day | |
JSC | 2020 | provision of | Coolant: | of the month following the | ||||
sports complex | 49,968 m3 | Coolant: | reporting period. | |||||
2020: 15,021 | ||||||||
(Note 3) | ||||||||
4 | 1 January | Limited | Baykalenergo | Up to 31 Thermal energy | Heat: | 2020: 113,576 | First payment (35% of the | |
2020 | Liability | JSC | December | 2020: 4,341.08 | 2021: 121,022 | planned total cost of heat) | ||
Company | 2022 | Gcal | 2022: 129,444 | shall be paid no later than | ||||
RUSAL | 2021: 4,341.08 | (Note 4) | the 18th of the month. | |||||
Taishet | Gcal | Second payment (50% of | ||||||
Aluminium | 2022: 4,341.08 | |||||||
Smelter | Gcal | the planned total cost of | ||||||
heat) shall be paid no later | ||||||||
Coolant: | than the last day of the | |||||||
2020: 250.12 m3 | month. | |||||||
2021: 250.12 m3 | ||||||||
2022: 250.12 m3 | Final payment (for the heat | |||||||
actually consumed, taking | ||||||||
into account earlier | ||||||||
payments) shall be paid no | ||||||||
later than the 10th day of | ||||||||
the following month. | ||||||||
Total estimated | 2020: 5,019,773 | |||||||
consideration | 2021: 121,022 | |||||||
payable (USD) | 2022: 129,444 |
Notes:
- The thermal energy rate is in accordance with the thermal energy tariff. The thermal energy tariff for 2020 is USD36.08/Gcal.
- The thermal energy rate is in accordance with the thermal energy tariff. The heat energy tariff for 2020 is USD13.39/ Gcal. The tariff for chemical water (coolant) for 2020 is USD0.1/m3.
- The thermal energy rate is in accordance with the thermal energy tariff. The heat energy tariff for 2020 is USD36.08/ Gcal. The coolant tariff for 2020 is USD0.30/m3.
- The thermal energy rate is in accordance with the thermal energy tariff. The heat energy tariff for each of 2020, 2021 and 2022 are: USD26.14/Gcal, USD27.86/Gcal and USD29.79/Gcal respectively. The coolant tariff for each of 2020, 2021 and 2022 are: USD0.44/m3, USD0.46/m3 and USD0.48/m3 respectively.
− 6 −
The consideration under the New Heat Supply Contracts will be settled in cash via bank transfer or by off-setting reciprocal obligations.
THE ANNUAL AGGREGATE TRANSACTION AMOUNT
Pursuant to Rule 14A.81 of the Listing Rules, the continuing connected transactions contemplated under the New Heat Supply Contracts and the Previously Disclosed Heat Supply Contracts should be aggregated, as they were entered into by members of the Group with associates of En+, and the subject matter of each contract relates to the heat supply by the associates of En+ to the Group.
The annual aggregate transaction amount that is payable by the Group to the associates of En+ under the New Heat Supply Contracts and the Previously Disclosed Heat Supply Contracts for each of the financial years ending 31 December 2020, 31 December 2021 and 31 December 2022 are estimated to be approximately USD9.688 million, USD0.124 million and USD0.131 million respectively.
Regarding contract numbers 1, 3 and 4 in the table above, Baykalenergo JSC is a monopolist in the transport of heat and has the necessary licenses and permits to render the relevant services, therefore the relevant New Heat Supply Contracts were entered into. Regarding contract number 2 in the table above, Khakass Municipal Systems LLC is a monopolist in the city of Sayanogorsk in the supply of thermal energy and the rates are regulated by the State Committee on tariffs and energy of the Republic of Khakassia, therefore the relevant New Heat Supply Contract was entered into.
The contract price of the New Heat Supply Contracts has been arrived with reference to the market price and on terms no less favourable than those prevailing in the Russian market for the heat of the same type and quality and those offered by the associates of En+ to independent third parties. The annual aggregate transaction amount is derived from the total contract price under the New Heat Supply Contracts and the Previously Disclosed Heat Supply Contracts, which was based on the need of heat by the Group for the year.
REASONS FOR AND BENEFITS OF THE TRANSACTIONS
The New Heat Supply Contracts have been entered into for the purpose of obtaining heat for the Group's production process and for its facilities. The Company considers that the transactions contemplated under the New Heat Supply Contracts are for the benefit of the Company as there is no alternative supplier available in the region.
− 7 −
The Directors (including the independent non-executive Directors) consider that the New Heat Supply Contracts are on normal commercial terms which are fair and reasonable and the transactions contemplated under the New Heat Supply Contracts are in the ordinary and usual course of business of the Group and in the interests of the Company and its shareholders as a whole.
None of the Directors has a material interest in the transactions contemplated under the New Heat Supply Contracts, save for Mr. Christopher Burnham and Mr. Nick Jordan who are directors of En+, Mr. Vyacheslav Solomin, who is the chief operating officer of En+, and Mr. Vladimir Kolmogorov, who is the first deputy chief executive officer for technical policy of En+, being the holding company of each of Baykalenergo JSC and Khakass Municipal Systems LLC. Mr. Vladimir Kolmogorov is also the head of technical supervision of JSC EuroSibEnergo, a company which is owned by En+. Accordingly, Mr. Christopher Burnham, Mr. Nick Jordan, Mr. Vyacheslav Solomin and Mr. Vladimir Kolmogorov did not vote on the Board resolution approving the New Heat Supply Contracts.
LISTING RULES IMPLICATIONS
The ultimate beneficial owner of each of Baykalenergo JSC and Khakass Municipal Systems LLC is En+, which holds more than 90% of the issued share capital of those entities.
Each of Baykalenergo JSC and Khakass Municipal Systems LLC is held by En+ (being a substantial shareholder of the Company) as to more than 30% of the issued share capital and is therefore an associate of En+, which in turn is a substantial shareholder of the Company. Accordingly, each of Baykalenergo JSC and Khakass Municipal Systems LLC is a connected person of the Company under the Listing Rules. The transactions contemplated under the New Heat Supply Contracts therefore constitute continuing connected transactions of the Company.
The estimated annual aggregate transaction amount of the continuing connected transactions under the New Heat Supply Contracts and the Previously Disclosed Heat Supply Contracts for the financial year ending 31 December 2020 is more than 0.1% but less than 5% under the applicable percentage ratios. Accordingly, pursuant to Rule 14A.76 of the Listing Rules, the transactions contemplated under these contracts are only subject to the announcement requirements set out in Rules 14A.35 and 14A.68, the annual review requirements set out in Rules 14A.49, 14A.55 to 14A.59, 14A.71 and 14A.72 and the requirements set out in Rules 14A.34 and 14A.50 to 14A.54 of the Listing Rules. These transactions are exempt from the circular and the shareholders' approval requirements under Chapter 14A of the Listing Rules.
− 8 −
Details of the New Heat Supply Contracts and the Previously Disclosed Heat Supply Contracts will be included in the next annual report and accounts of the Company in accordance with Rule 14A.71 of the Listing Rules where appropriate.
THE NEW REPAIR SERVICES CONTRACTS
Reference is made to the announcements of the Company dated 2 March 2018 and 24 December 2019 in relation to the Previously Disclosed Repair Services Contracts. The Company announces that the members of the Group entered into/will enter into the contracts with the associates of En+, pursuant to which the associates of En+ agreed to provide repair services to the members of the Group (the "New Repair Services Contracts"), with details as below.
Estimated | |||||||
consideration | |||||||
payable for | |||||||
the year | |||||||
ending 31 | |||||||
December | |||||||
Customer | 2020 | ||||||
Date of the | excluding | ||||||
(member of the | Contractor | Repair | Term of | VAT | |||
contract | Group) | (associate of En+) | services | contract | (USD) | Payment terms | |
1 | 1 January 2020 | PJSC «RUSAL | Limited Liability | Car | Up to 31 | 1,688 | Payment is made |
Bratsk» | Company | maintenance December | (Note 1) | within 10 business | |||
"KraMZ-Auto" | and repair | 2020. | days upon delivery | ||||
services | of the services. | ||||||
2 | 1 January 2020 | PJSC «RUSAL | Joint Stock Company | Technical | Up to 31 | 624,695 | Payment is made |
Bratsk» | «Irkutsk electronetwork | maintenance December | (Note 2) | within 5 days from | |||
company» ("JSC | of | 2020. | the receipt of the | ||||
"IENC"") | equipment | invoice for the | |||||
current month. | |||||||
3 | 27 December | JSC "RUSAL | Joint-Stock Company | Services | Up to 31 | 2,769,114 | A prepayment of |
2019 | Achinsk" | "Irkutskenergoremont" | for works | December | (Note 3) | 50% of the | |
on | 2020. | consideration is | |||||
overhaul | made according to | ||||||
of the | the monthly finance | ||||||
boiler #1 | schedule up to the | ||||||
5th of the month, | |||||||
the final payment of | |||||||
50% of the | |||||||
consideration is | |||||||
made within 10 days | |||||||
from receipt of the | |||||||
original invoice. | |||||||
4 | 1 January 2020 | JSC "RUSAL | Joint-Stock Company | Maintenance Up to 31 | 5,904,061 | A prepayment of | |
Achinsk" | "Irkutskenergoremont" | of | December | (Note 4) | 50% of the | ||
equipment | 2020. | consideration is | |||||
made according to | |||||||
the monthly finance | |||||||
schedule up to the | |||||||
5th of the month, | |||||||
the final payment of | |||||||
50% of the | |||||||
consideration is | |||||||
made within 10 days | |||||||
from receipt of the | |||||||
original invoice. | |||||||
Total estimated | 9,299,558 | ||||||
consideration | |||||||
payable (USD) |
− 9 −
Notes:
- The basis of calculation is determined by the price for one unit of the service expressed in persons/hour depending on type of equipment used for the accounting period.
- The basis of calculation is determined by the estimated costs of operation and maintenance of electric networks.
- The basis of calculation is determined by the estimated costs of the works and materials.
- The basis of calculation is determined by the estimated costs for the works, which is USD9.83/hour without VAT.
The consideration under the New Repair Services Contracts will be settled in cash via bank transfer or by off-setting reciprocal obligations.
THE ANNUAL AGGREGATE TRANSACTION AMOUNT
The contract price payable under the New Repair Services Contracts has been determined with reference to the market price and on terms no less favourable than those prevailing in the Russian market for repair services of the same type and quality and those offered by the associates of En+ to independent third parties.
Based on the terms of the New Repair Services Contracts and the Previously Disclosed Repair Services Contracts, the annual aggregate transaction amount that is payable by the Group to the associates of En+ for the financial year ended 31 December 2020 is estimated to be approximately USD11.116 million.
For the contracts stated in items 1 to 4 of the table above, in accordance with the Company's procurement policies and using tools such as the Company's procurement portal, the Company invited several organizations to take part in the tender in relation to the required repair services. The Company's procurement managers, in line with the best-in-class experience and know-how of the Company's procurement policies, with approval from the Company's bidding committee chose the contractor offering the best terms and conditions (the contractor offered the lowest price, is currently carrying out similar works and has the relevant experience) and then entered into the contract with the chosen contractor. For the contract stated in item 2 of the table above, as JSC "IENC" is the only contractor with the necessary qualifications and access to service overhead lines in the territory of the Irkutsk region, the relevant New Repair Services Contract was entered into.
The annual aggregate transaction amount by the Group is estimated by the Directors based on the amount of repair services to be received and the contract price.
− 10 −
THE AGGREGATION APPROACH
Pursuant to Rule 14A.81 of the Listing Rules, the continuing connected transactions contemplated under the New Repair Services Contracts and the Previously Disclosed Repair Services Contracts should be aggregated, as they were entered into by the Group with the associates of the same group of connected persons who are parties connected or otherwise associated with one another, and the subject matter of each of the contracts relates to the receipt of repair and maintenance services by members of the Group.
REASONS FOR AND BENEFITS OF THE TRANSACTIONS
The Directors consider that the New Repair Services Contracts are for the benefit of the Company, as the contractor offered a competitive price.
The Directors (including the independent non-executive Directors) consider that the New Repair Services Contracts have been negotiated on an arm's length basis and on normal commercial terms which are fair and reasonable and the transactions contemplated under the New Repair Services Contracts are in the ordinary and usual course of business of the Group and in the interests of the Company and its shareholders as a whole.
None of the Directors has a material interest in the transactions contemplated under the New Repair Services Contracts, save for Mr. Christopher Burnham and Mr. Nick Jordan who are directors of En+, Mr. Vyacheslav Solomin, who is the chief operating officer of En+, and Mr. Vladimir Kolmogorov, who is the first deputy chief executive officer for technical policy of En+, being the holding company of each of Limited
Liability Company "KraMZ-Auto" and Joint-Stock Company "Irkutskenergoremont", and which also holds more than 30% of JSC "IENC". Mr. Vladimir Kolmogorov is also the head of technical supervision of JSC EuroSibEnergo, a company which is owned by En+. Accordingly, Mr. Christopher Burnham, Mr. Nick Jordan, Mr. Vyacheslav Solomin and Mr. Vladimir Kolmogorov did not vote on the Board resolution approving the New Transportation Contracts.
LISTING RULES IMPLICATIONS
The ultimate beneficial owner of each of Limited Liability Company "KraMZ-Auto" and Joint-Stock Company "Irkutskenergoremont" is En+, which holds more than 90% of the issued share capital of those entities. The ultimate beneficial owners of JSC "IENC" are En+ and PJSC "RusHydro", which holds more than 50% and more than 40% of the issued share capital of JSC "IENC" respectively.
− 11 −
Each of Limited Liability Company "KraMZ-Auto" and Joint-Stock Company "Irkutskenergoremont" is an indirect subsidiary of En+, and is therefore an associate of En+. JSC "IENC" is directly or indirectly held by En+ as to more than 30% of the issued share capital and is therefore an associate of En+, which is a substantial shareholder of the Company. Accordingly, each of Limited Liability Company "KraMZ-Auto",Joint-Stock Company "Irkutskenergoremont" and JSC "IENC" is a connected person of the Company under the Listing Rules.
The estimated annual aggregate transaction amount of the continuing connected transactions under the New Repair Services Contracts and the Previously Disclosed Repair Services Contracts for the financial year ending 31 December 2020 is more than 0.1% but less than 5% under the applicable percentage ratios. Accordingly, pursuant to Rule 14A.76 of the Listing Rules, the transactions contemplated under these contracts are only subject to the announcement requirements set out in Rules 14A.35 and 14A.68, the annual review requirements set out in Rules 14A.49, 14A.55 to 14A.59, 14A.71 and 14A.72 and the requirements set out in Rules 14A.34 and 14A.50 to 14A.54 of the Listing Rules. These transactions are exempt from the circular and the independent shareholders' approval requirements under Chapter 14A of the Listing Rules.
Details of the New Repair Services Contracts and the Previously Disclosed Repair Services Contracts will be included in the next annual report and accounts of the Company in accordance with Rule 14A.71 of the Listing Rules where appropriate.
PRINCIPAL BUSINESS ACTIVITIES
The Company is principally engaged in the production and sale of aluminium, including alloys and value-added products, and alumina.
OVE is principally engaged in the provision of transportation services and railway transport.
"KraMZ" Ltd. is principally engaged in the production of metal and materials, trade and procurement activities, the provision of services, including transportation services.
Limited Liability Company "KraMZ-Auto" is principally engaged in the provision of transportation services.
Joint-Stock Company "Irkutskenergoremont" is principally engaged in activities for supporting of operability of thermal power plants.
JSC "IENC" is principally engaged in transmission and distribution of electricity.
Baykalenergo JSC is principally engaged in generating heat and electricity.
− 12 −
Khakass Municipal Systems LLC is principally engaged in generating heat and electricity.
En+ is a parent company for vertically integrated aluminium and power group, engaged in aluminium production and energy generation.
PJSC "RusHydro" ("Public Joint-Stock Company Federal Hydro-Generating Company - RusHydro") is principally engaged in the generation and sales of hydropower.
DEFINITIONS
In this announcement, the following expressions have the following meanings, unless the context otherwise requires:
"associate(s)" | has the same meaning ascribed thereto under the |
Listing Rules. | |
"Board" | the board of Directors. |
"Company" | United Company RUSAL Plc, a limited liability |
company incorporated in Jersey, the shares of | |
which are listed on the Main Board of the Stock | |
Exchange of Hong Kong Limited. | |
"connected person(s)" | has the same meaning ascribed thereto under the |
Listing Rules. | |
"continuing connected | has the same meaning ascribed thereto under the |
transactions" | Listing Rules. |
"Director(s)" | the director(s) of the Company. |
"En+" | EN+ GROUP International public joint-stock |
company (formerly En+ Group Plc, a company | |
initially registered in Jersey that continued as legal | |
entity in Russia in 2019), a company registered in | |
accordance with the procedure established by the | |
laws of the Russian Federation, in accordance with | |
the Federal Law of the Russian Federation "On | |
International Companies", and which is a | |
Shareholder of the Company. | |
"Group" | the Company and its subsidiaries. |
"Listing Rules" | the Rules Governing the Listing of Securities on |
the Stock Exchange of Hong Kong Limited. |
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"OVE" | Otdelenie vremennoy ekspluatatsii JSC, an indirect |
subsidiary of En+. | |
"percentage ratios" | the percentage ratios under Rule 14.07 of the |
Listing Rules. | |
"Previously Disclosed Heat | the heat supply contracts entered into between |
Supply Contracts" | members of the Group and associates of En+, |
pursuant to which the associates of En+ agreed to | |
supply heat energy to members of the Group as | |
disclosed in the announcements of the Company | |
dated 29 December 2017, 2 February 2018, 28 | |
December 2018 and 30 August 2019. | |
"Previously Disclosed | the repair services contracts between members of |
Repair Services | the Group and the associates of En+, pursuant to |
Contracts" | which the associates of En+ agreed to provide |
repair services to members of the Group, as | |
disclosed in the announcements of the Company | |
dated 2 March 2018 and 24 December 2019. | |
"Previously Disclosed | the series of transportation contracts between |
Transportation Contracts" | members of the Group and the associates of En+, |
pursuant to which the associates of En+ agreed to | |
provide transportation services to members of the | |
Group, as disclosed in the announcements of the | |
Company dated 29 December 2017, 19 January | |
2018 and 2 February 2018. | |
"substantial shareholder" | has the same meaning ascribed thereto under the |
Listing Rules. | |
"USD" | United States dollars, the lawful currency of the |
United States of America. | |
"VAT" | value added tax. |
By Order of the Board of Directors of | |
United Company RUSAL Plc | |
Aby Wong Po Ying | |
Company Secretary | |
30 December 2019 |
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As at the date of this announcement, the executive Directors are Mr. Evgenii Nikitin, Mr. Evgeny Kuryanov and Mr. Evgenii Vavilov, the non-executive Directors are Mr. Marco Musetti, Mr. Vyacheslav Solomin and Mr. Vladimir Kolmogorov and the independent non-executive Directors are Dr. Elsie Leung Oi-sie, Mr. Dmitry Vasiliev, Mr. Bernard Zonneveld (Chairman), Mr. Maxim Poletaev, Mr. Randolph N. Reynolds, Mr. Kevin Parker, Mr. Christopher Burnham and Mr. Nick Jordan.
All announcements published by the Company are available on its website under the links http://www.rusal.ru/en/investors/info.aspx and http://rusal.ru/investors/info/moex/ , respectively.
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United Company RUSAL plc published this content on 30 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 December 2019 00:30:02 UTC