HONG KONG: Cheung Kong (Holdings), controlled by billionaire Li Ka-shing, will buy $100 million worth of shares in United Co RUSAL Ltd's initial public offering in Hong Kong, said two people familiar with the plan.

The shares purchased by the property developer won't have a lock-up period, one of the people said. Both declined to be identified, as the information isn't public.

RUSAL, controlled by billionaire Oleg Deripaska, is seeking to capitalize on a 52 percent surge in Hong Kong's benchmark stock index last year and become the first Russian company to sell shares in the city. The offering, delayed by regulators at least twice on concerns about the company's $14.9 billion debt, is barred from retail investors.

Cheung Kong joins investors, including New York hedge-fund manager Paulson & Co and Malaysian billionaire Robert Kuok, in purchasing stock in the world's largest aluminum producer.

A Cheung Kong spokeswoman, who declined to be identified, confirmed the plan to buy the shares. A RUSAL spokeswoman, who didn't want to be identified, declined to comment immediately.

Moscow-based RUSAL plans to sell 1.61 billion shares at HK$9.10 to HK$12.50 each, according to a statement filed with Hong Kong's stock exchange last month. It is offering an approximately 10.6 percent stake in the form of shares and global depositary receipts.

Bloomberg News

(HK Edition 01/14/2010 page4)