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Evraz Group Crossed Chinese Border
Evraz Group has announced the intention to get control over Chinese maker and trader of steel, Delong Holdings Limited. The given options provide for buying out 51 percent in the company in three stages and at the price that is 35.5 percent higher than the current one. The deal will cost roughly $1.5 billion to Evraz and it will be the first time when Russia’s metal company acquires a Chinese competitor.
Evraz Group S.A. announced yesterday it agreed with Best Decade Holdings to buy out 51 percent in Delong Holdings. Evraz will first acquire roughly 10 percent in Delong Holdings at $2.94 per a stock. Under the call option provided by Best Decade, Evraz will buy another 32.08 percent once the first stage is completed but no later than during six months after February 18, 2008.
When the restrictions related to the current liabilities of the company cease to be in force, Best Decade holders will sell another 8.97 percent to Evraz, which will ultimately accumulate 51.05 percent in Delong Holdings Limited. The stake of Best Decade will narrow from 77.08 percent to 26.03 percent.
Listed on Singapore exchange, Delong Holdings Limited is an iron and steel group with headquarters located in Beijing. Delong annually manufactures around 3 million tons of hot-rolled sheets; it posted the revenues of $740 million and the net profit of $72 million for the first nine months of 2007. The yesterday’s capitalization of the company was $1.14 billion.
www.kommersant.com
All the Article in Russian as of Feb. 19, 2008
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