OREANDA-NEWS. MMC Norilsk Nickel has taken first steps to create the largest Russian privately owned energy holding company.

According to the press service of MMC Norilsk Nickel, this large scale project envisages the spin-off of energy assets already purchased by the Company and those scheduled to be acquired.

“The spin-off of energy assets into a new stand-alone company will increase the income of MMC Norilsk Nickel shareholders”, said Mikhail Prokhorov, General Director of the Company.

The Company currently owns stakes in a number of large energy generating and distributing companies, with market value exceeding USD 2.5 bln. However, MMC Norilsk Nickel, an enterprise engaged in mining and metal production, regards them as non-core assets, so they are practically excluded from estimating the Company’s market value.

“MMC Norilsk Nickel was successful in “blue chips” making.

To create the largest privately owned energy company in Russia, we will definitely take into account our previous experience with gold assets spin-off, focusing on the maximum transparency of the reorganization process and fair distribution of shares among shareholders of MMC Norilsk Nickel.

The Company’s strategy to form a portfolio of energy assets is based on two key principles: to secure stable energy supply for the operations and to ensure the best return on investments.  Energy assets that were acquired by the Company to ensure uninterrupted power supply to production plants and urban facilities in the Far North of Russia are not meant for the spin off. Such assets include, in particular, OJSC Taimyrenergo located in Norilsk Industrial Region and bought by MMC Norilsk Nickel in July 2006.