Mordashov Goes to London
Having suffered a major set-back in the deal with Arcelor, Severstal owner, Alexey Mordashov, will launch some portion of stocks on London Stock Exchange (LSE). Mordashov wants $1.5 billion for his 10 percent in Severstal, and it could be the biggest IPO of Russia’s metal companies.
Severstal is preparing placement of stocks on a foreign stock exchange that may happen this September, said a source with the company. The matter at stake is launching around 10 percent on LSE, an investment banker specified. Citibank, UBS and Deutsche Bank were offered to arrange the IPO.
Citibank, UBS and Deutsche Bank declined to comment yesterday, but sources of Reuters confirmed the information, giving a different date, October or November of this year.
Severstal would like to get $1.5 billion for 10 percent, according to the bankers, which corresponds to the overall capitalization of $15 billion and is much higher than today’s capitalization of the company. RTS quoted it $12.94 a stock yesterday, i.e. the overall capitalization could be just $12 billion.
After Evraz Group, Severstal is Russia’s second manufacturer of steel. Alexey Mordashov holds 89.4 percent, around 5 percent of the stocks are in circulation and minority holders own the remainder.
www.kommersant.com
All the Article in Russian as of Aug. 02, 2006
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