MOSCOW, Oct 18 (Reuters) - Glencore will convert its 8.75 percent stake in Russian aluminium giant Rusal to shares in En+ Group, an aluminium and hydropower group controlled by tycoon Oleg Deripaska, En+ said on Wednesday.
En+ said the swap will occur after it completes its initial public offering, which is due later this year. En+ currently owns 48.13 percent of Rusal’s shares.
Glencore will be entitled to appoint its chief executive to the board of directors of En+ after the share swap. The price has yet to be determined.
En+’s stake in Rusal, one of the world’s largest aluminium producers, will increase to 56.88 percent as a result of the conversion.
En+ is looking to raise as much as $1.5 billion from the sale of new and existing shares. (Reporting by Andrey Ostroukh and Maria Kiselyova; editing by Polina Devitt and Larry King)