Mubadala buys 2.6% of Russian aluminum firm En+

By Amirtha P S, Desk Reporter
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Mubadala Investment Company, Abu Dhabi-based sovereign investor, acquired a 2.6 percent stake in En+, a global leader in low-carbon aluminum and hydropower producer.

Following the deal, Mubadala’s total share ownership in En+ stands at 2.86 percent, the company said in a statement. It did not disclose the value of the deal.

The new block acquisition equates to 16,641,700 of En+ ordinary shares. The company is listed on the Moscow Stock Exchange, while its global depository receipts (GDR) are tradeable on the London Stock Exchange (LSE).

Mubadala, which has an asset base of $243.6 billion, has significant stakes in clean energy company Masdar and Emirates Global Aluminum, one of the biggest aluminum producers in the world.

Faris Al Mazrui
Faris Al Mazrui
Head of Russia
CIS Investments

“En+ has made significant progress in recent years and is well-positioned to generate sustainable value for stakeholders. The company is a market leader in the clean energy and aluminum sectors, and is a welcome addition to Mubadala’s growing and successful portfolio in Russia.” 

En+ has a controlling interest in Rusal, the world’s third-biggest aluminum producer behind China’s Chinalco and Hongqiao Group.

The shares were sold by Polina Yumasheva, whose stake in the company decreased to 2.58 percent, from 5.19 percent previously, the company said in a filing to the LSE.

En+, which declared a net profit of $1.02 billion in 2020 on revenue of $10.36 billion, said that demand for primary aluminum is estimated to grow by 5 to 6 percent this year as economic activity gradually resumes. In the longer term, it expects the acceleration of green technology trends to help drive aluminum demand over the coming years.

“Mubadala, which is committed to investments with positive and lasting impact, provides a further vote of confidence in the group’s ambitious strategy to lead our sector into the low-carbon economy,” Lord Barker of Battle, executive chairman of the En+ Group, said.

Mubadala has a number of investments in Russia and has previously announced a partnership with the Russian Direct Investment Fund to form a $7 billion co-investment platform.

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