Alexey Mordashov Merges Assets
// Severstal united steel with coal and processing
Severstal owner Alexey Mordashov has decided to transfer the mining and coal belonging to him to his company. As a result, experts say, Severstal will exceed Novolipetsk Steel in capitalization to become the most expensive metalworks in Russia. A supplemental emission of 72 percent of the authorized capital of the company will be necessary for the consolidation.
The supplemental emission will be conducted through closed subscription, with the main part of it bought, it is assumed, by the Cypriote Frontdeal, belonging to Mordashov, as does 84 percent of Severstal. As payment for its share, the offshore company will transfer a package of railroad and coal assets to the authorized capital of Severstal. Those assets are now under the management of Severstal-Resource and include Kuzbassugol, Pechoraugol, Vorkutaugol, the Vorgashorskaya mine, Pervomaiskaya mine and Berezovskaya mine, Olenegorsky processing ore plant and Karelian Pellets. Frontdeal controls between 51 and 100 percent of them.
Interfax-AFI reports that, judging from the current quotations on Severstal stock ($12.05 per stock), its capitalization after the supplemental emission will reach $11.4 billion. According to analyst Alexey Morozov of UBS investment company, Severstal will thus exceed Novolipetsk Steel in that regard, since its capitalization is approximately $11 billion. Alexander Liberov, general director of the Hatch RBS consulting company, the main advantage for Severstal shareholders will be the opportunity to receive cheaper credit, which will be needed by the company for acquisitions of assets in Russia and abroad. A source at Severstal Group told Kommersant that the company is considering the acquisition of new assets but has yet to find an offer that suits it.
by
Maria Cherkasova
All the Article in Russian as of Feb. 09, 2006
|
