Evraz Closes First Stage of Acquisition of Ukrainian Assets

Evraz Group S.A today announced completion of the first stage of the earlier announced acquisition of selected production assets in Ukraine.

 

For a cost in excess of $1,000 mln Evraz has closed the acquisition of 51.4% of shares of Palmrose Limited, a Cyprus-based holding company for the following assets in Ukraine:

 

 - a 99.25% share holding in the Sukhaya Balka iron ore mining and processing complex;

 - a 95.57% share holding in the Dnepropetrovsk Iron and Steel Works;

 - share holdings in three coking plants (93.74% of Bagleykoks, 98.65% of Dneprkoks and 93.83% of shares outstanding of Dneprodzerzhinsk Coke Chemical Plant).

 

Evraz transferred the amount payable in favour of the seller in December 2007.

 

The next stage of the transaction that implies issuance of new shares in Evraz is subject to certain legal requirements in Luxembourg, and is expected to be completed soon thereafter. An announcement as to the final completion date and terms will be made in due course.