Evraz Buys Out U.S. Claymont Steel
Evraz Group will buy 100 percent in U.S. Claymont Steel for $564.8 million. Evraz needs the asset to secure demand for the product of Oregon Steel that it acquired past year.
Evraz Group announced yesterday it sealed a contract to buy out 100 percent in U.S. Claymont Steel for $564.8 million, $23.5 per a stock. The offer will be made by Evraz subsidiary, Titan Acquisition Sub, Inc., till December 24. The price takes into account Claymont Steel’s indebtedness of $157.6 million, said Irina Kibina, vice president for corporate relations at Evraz Group. The result of the deal will be Claymont Steel’s merger into Evraz Group.
Claymont Steel produces and sells sheet steel. Its capacity enables to make roughly 500,000 tons of rolled metal a year. H.I.G. Capital owns 42.6 percent in Claymont, the company’s management holds 0.43 percent, while the remaining 56.97 percent belongs to institutional and private investors.
The BOD of Claymont Steel unilaterally recommended to holders to sell their stakes to Evraz and the biggest of them, H.I.G. Capital, confirmed its agreement yesterday.
The acquisition “will widen the company’s presence in North America, on one of the most vital markets globally,” said Evraz Group President Alexander Frolov.
Early this year, Evraz closed the deal for buying out 100 percent in U.S. Oregon Steel Mills for $2.3 billion; its product lineup includes rails and pipes.
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All the Article in Russian as of Dec. 11, 2007
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