UC Rusal wins legal case against Nigeria in London

UC Rusal has beaten the Nigerian authorities in dispute in the London Arbitration (LCIA), proved that it legally owns 77.5% in the Alscon plant`, bought for $250 million in 2006. In April it became known that the company wanted to sell Alscon, and the LCIA’s decision would reduce the risks of the transaction. But the recognition of the London court’s decision in Nigeria can take years, and UC Rusal is likely to receive for the asset less than it has spent.

UC Rusal proved in LCIA, that it legally bought 77.5% in aluminum plant Alscon from the Nigeria’s authorities in 2006, the company reports. UC Rusal challenged the decision of the Bureau of public enterprises (BPE), the Government and other agencies in Nigeria. On October 15, the Arbitration confirmed the terms of the parties’ agreement, including the fact that the agreement on the shares purchase dated 2006 "is valid, binding and came into full force". The court also confirmed that UC Rusal received the Alscon’s shares without any encumbrances.

BFI Group Corporation (BFIG, according to unofficial sources, is controlled by an American of Nigerian descent Judge Ruben) claimed to asset, which beat UC Rusal at privatization tender, offered $410 million, but didn’t find the money. Two years later, UC Rusal bought 77.5% of the Alscon’s shares for $250 million (7.5% of the shares were purchased from German Ferrostaal). Since 2004, BFIG tried to prove its right to the shares in courts, and in 2012 the Supreme Court of Nigeria took its side, after which in August 2012, UC Rusal filed a lawsuit in London, demanded a ban on carve-out of shares or payment of $500 million.