OREANDA-NEWS. September 14, 2010. Vladimir Potanin and Mikhail Prokhorov agreed to terminate the March 2008 agreement by which the two sides established a management company to run entities under joint control. Potanin and Prokhorov also agreed that Mr. Prokhorov will buy out all of the shares in Open Investments controlled by Mr. Potanin. Currently, they each have roughly 40% stakes in OPIN. Three days ago, Potanin’s Interros issued a press release stating that it plans to establish a real estate company called ProfEstate, which will unite the real estate assets of Mr. Potanin (including his 42% stake in Open Investments), reported the press-centre of OTKRITIE Financial Corporation.

View: Under Russian stock market legislation, Prokhorov would have to make a mandatory buyout offer to the minority shareholders of Open Investments. The mandatory buyout price should be calculated as the greater of one of two figures -- either the buyout price paid to Potanin, or the 6-month average of the market price of shares. The latter figure (USD39.8/share) is about 22% above the current market price of the stock, which suggests that investors may expect on some premium to current market prices.