Severstal announces sale of Mini-Mill Balakovo (807435)
06 May 2019 - 9:10PM
UK Regulatory
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release.
PAO Severstal (SVST)
Severstal announces sale of Mini-Mill Balakovo
06-May-2019 / 14:10 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Severstal announces sale of Mini-Mill Balakovo
May 6, 2019, Moscow - PAO Severstal (the "Company") one of the world's
leading vertically integrated steel and steel-related mining companies,
announces that it has entered into a definitive agreement with Abinsk
Electric Steel Works LTD for the sale of Mini-Mill Balakovo. The
consideration of the transaction will be $215 million.
The transaction is expected to complete in first half of 2019 following the
receipt of approvals and other standard conditions.
Alexander Shevelev, CEO of Severstal, commented:
"Following the sale of Mini-Mill Balakovo, we plan to focus on developing
steel production at our main asset, the Cherepovets Steel Mill. We are
confident that this will enable us to streamline our internal processes to
execute our updated strategic priorities successfully. We are committed to
providing our customers with integrated solutions and increasing our
production of high value-added products. At the same time Severstal will
continue to supply long products via our long product facilities at CherMK.
Mini-Mill Balakovo was the first producer of long products in the Volga
Federal District and has become known as a trusted supplier of high-quality
products. We believe that the Mini-Mill still has a lot of potential and
will benefit from the new shareholder's focus on long product production."
Vitaly Babenko, General Director of the Abinsk electrometallurgical plant,
noted:
"Mini-Mill Balakovo is a new-generation facility, which produces demanded
products for the construction industry. Modern facilities of the plant
combine the production of high-grade steel and the production of long
products on a high-speed rolling mill. The acquisition of the company is
fully consistent with the strategy of our company and will allow us to
strengthen our position in the market. We welcome the professional team of
the plant and are confident that Mini-Mill Balakovo will continue its
successful development within the structure of our company".
Mini-Mill Balakovo has an annual capacity of 1 million tonnes of profiled
iron for building materials (reinforcement, angle, channel). It produces a
range of 40 different products. The mill has produced over three and a half
million tonnes of products since it was first launched.
Citigroup acted as financial advisor to PAO Severstal.
For further information, please contact:
Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66
evgenii.belov@severstal.com
Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66
anastasia.mishanina@severstal.com
***
P?? Severstal is one of the world's leading vertically-integrated steel and
steel related mining companies, with assets in Russia, Latvia and Poland.
Severstal is listed on RTS and MICEX and the company's GDRs are traded on
the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142
million in 2018. Severstal's crude steel production in 2018 reached 12.0
million tonnes. www.severstal.com
ISIN: US8181503025
Category Code: UPD
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 8516
EQS News ID: 807435
End of Announcement EQS News Service
(END) Dow Jones Newswires
May 06, 2019 07:10 ET (11:10 GMT)
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