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The future of Norilsk Nickel's credit rating position is contingent on a reduction in dividends if share prices remain low, ratings agency Moody's said.
Disputes among shareholders towards the end of last year had a negative effect on the corporate governance at Norilsk, according to Moody's.
"Before the end of 2012, disagreement between Norilsk Nickel's main shareholders, Interros and UC Rusal, on the strategic development of the company led to pro-shareholder actions," Moody's said.
"These actions increased the company's leverage and constrained the effective execution of its functions by management. It also adversely affected the company's corporate governance, as management voted with its quasi-treasury shares."
Stability
In December last year, Interros and Rusal signed a new agreement that brought stability to the company and guaranteed a balanced board of directors, Moody's added.
Rusal and Interros also agreed to sell 2.03% and 2.84% of their respective stakes in Norilsk to Millhouse Capital - a holding company owned by Roman Abramovich - at $160 per share. The transaction is expected to complete imminently.
The new agreement includes provision for higher dividend payouts of about $2 billion in 2013 and about $3 billion in both 2014...