Sale of 49% in NS Group to TMK completed
February 02 2009 - 10:59AM
UK Regulatory
TIDMEVR
RNS Number : 6559M
Evraz Group S.A.
02 February 2009
for immediate release
Evraz completes the sale of 49% in NS Group to TMK
February 2, 2009 - Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces
that Evraz and OAO TMK and its affiliates ("TMK") have closed the transaction on
the sale by Evraz of the remaining 49% in NS Group to TMK.
In March 2008, the Company entered into an agreement with SSAB, a Swedish
steel company, to acquire IPSCO's Canadian and US businesses, while
simultaneously entering into a back-to-back agreement with TMK, Russia's leading
tubular player. The back-to-back transaction consisted of a sale of the acquired
US tubular and pipe businesses, including 51% in NS Group, to TMK. In addition,
Evraz and TMK signed a put/call option agreement that gave Evraz the right to
sell and to TMK the right to buy the remaining 49% in NS Group. The put option
could be exercised by the Company not earlier than October 22, 2009. The call
option was exercisable by TMK in respect of any shareholding in NS Group any
time starting from June 12, 2008.
Following the exercise of the call option by TMK which decided to exercise it in
respect of the whole stake in NS Group held by Evraz, the resulting sale and
purchase transaction has been completed at an exercise price of US$508 million.
The proceeds from the sale will be kept in reserve against future interest
payments on the Company's debt in 2009.
###
For further information:
Evraz Group
Corporate Affairs and Investor Relations
Alexey Ivanov
Tel: +7 495 232 1370
IR@evraz.com
Evraz Group S.A. is a large vertically integrated steel, mining and vanadium
business with operations in the Russian Federation, Ukraine, Europe, USA, Canada
and South Africa. Evraz produced 16.4 million tonnes of crude steel in 2007,
ranking it among the 17 largest steel producers in the world by volume. Its
mining operations cover 93% of iron ore and over 100% of coking coal internal
consumption. Evraz's total consolidated revenues for the year ended 31 December
2007 were US$12,808 million and consolidated EBITDA was US$4,254 million. For 1H
2008 the consolidated revenues were US$10,726 million and EBITDA - US$3,700
million. For further information visit www.evraz.com
This information is provided by RNS
The company news service from the London Stock Exchange
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