Evraz Plc Potential demerger of coal assets (9559M)
January 26 2021 - 9:40AM
UK Regulatory
TIDMEVR
RNS Number : 9559M
Evraz Plc
26 January 2021
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PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
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JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
26.01.2021
EVRAZ plc ("EVRAZ" or the "Company") announces the potential
demerger of its coal assets.
The Board of EVRAZ regularly reviews the Company's strategic
options to maximise long-term value for EVRAZ shareholders. Today
the Board has given approval for the Company to consider the
strategic merits of and possible structures for a potential
demerger of its coal business (the "Potential Demerger").
The Potential Demerger may allow EVRAZ to focus on developing
its steel business and establish the coal business, currently
consolidated under PAO Raspadskaya, as an independent leading
regional producer of high quality metallurgical coal.
The Board continues to evaluate various strategic options for
the Company and there can be no assurances that the Potential
Demerger will be undertaken. If undertaken, the Potential Demerger
would be subject to regulatory, shareholder and other third-party
approvals. The Board will keep shareholders updated as appropriate
with further announcements.
The Board has engaged J.P. Morgan Securities plc (which conducts
its UK investment banking activities as J.P. Morgan Cazenove) and
Citigroup Global Markets Limited as financial advisors and
Linklaters LLP as a legal advisor to assist with the ongoing review
of, and preparation for, the Potential Demerger.
About the Company
EVRAZ is a vertically integrated steel, mining and vanadium
business with operations in the Russian Federation, the USA,
Canada, the Czech Republic and Kazakhstan. EVRAZ is among the top
steel producers in the world. A significant portion of the ompany's
internal consumption of iron ore and coking coal is covered by its
mining operations. EVRAZ is listed on the London Stock Exchange and
is a constituent of the FTSE 100 index.
About Raspadskaya
Following consolidation of the Company's coal businesses, which
the Company announced on 13 November 2020 and completed on 30
December 2020, PAO Raspadskaya comprises essentially all material
assets of EVRAZ's Coal segment, including eight underground mines,
two open-pit operations and three processing facilities located in
the Kemerovo region and Tyva Republic of Russia. In the six months
ending 30 June 2020, the EVRAZ Coal segment contributed US$218
million, or approximately 20%, to the Company's total EBITDA of
US$1,073 million.
PAO Raspadskaya is listed on the Moscow Exchange, with a current
market capitalisation of c.RUB107bn (c.US$1.5bn).
For further information:
Media Relations:
Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
Moscow: +7 495 232 1370
ir@evraz.com
Important information
Each of J.P. Morgan Securities plc (which conducts its UK
investment banking activities as J.P. Morgan Cazenove) and
Citigroup Global Markets Limited (together, the "Financial
Advisors"), is authorised by the Prudential Regulation Authority
and regulated in the United Kingdom by both the Prudential
Regulation Authority and the Financial Conduct Authority, is acting
exclusively for the Company and no one else in connection with the
Potential Demerger. They will not regard any other person as a
client in relation to the Potential Demerger and will not be
responsible to anyone other than the Company for providing the
protections afforded to their respective clients or for giving
advice in relation to the Potential Demerger or the contents of
this announcement or any transaction, arrangement or other matter
referred to herein.
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END
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