Evraz Plc EVRAZ sells 34% stake in EVRAZ Highveld (0197P)
13 August 2014 - 8:01PM
UK Regulatory
TIDMEVR
RNS Number : 0197P
Evraz Plc
13 August 2014
EVRAZ sells 34% stake in EVRAZ Highveld Steel and Vanadium
13 August 2014 - EVRAZ plc (LSE: EVR) ("EVRAZ" or the "Company")
has signed an agreement to sell 34% of the issued share capital of
EVRAZ Highveld Steel and Vanadium Ltd ("EHSV" or "Highveld") held
by EVRAZ to Macrovest 147 Proprietary Limited ("Macrovest") for ZAR
289 million (equivalent of USD 27 million as of 12 August 2014). It
has been agreed that Macrovest will also refinance 50% of the
outstanding working capital facility provided by EVRAZ plc.
The purchaser of the shares, Macrovest, is led by Barend
Petersen, a chartered accountant with significant local and global
experience. Mr Petersen is the executive chairman of De Beers
Consolidated Mines, and a non-executive director of De Beers Group,
Ponahalo Group, Anglo American South Africa, Alexander Forbes,
Curro Holdings as well as Sizwe Business Recoveries which he
founded in 1998. He is also the chairman of the Environment
Community Occupational Health and Safety Committee of De Beers
Group.
The sale of such a significant interest in Highveld to a local
strategic investor is an important step to ensure sustainable
development of Highveld as South Africa's leading steel and
vanadium business.
Alexander Frolov, EVRAZ CEO, said,
"We have analysed various options for the further development of
Highveld and decided to introduce a strong local partner, who we
believe will add significant value and expertise in developing our
South African asset in a challenging market. We are looking forward
to working together with Macrovest and Mr Petersen personally on
the Board of Highveld. As a result of the transaction, EVRAZ will
remain a 51% shareholder of Highveld and continue to focus on
growing operating efficiency and profit enhancing initiatives."
Barend Petersen said,
"This transaction is significant, not only for Highveld, but
also for the whole sector of the beneficiation of minerals mined in
South Africa. We are optimistic of Highveld's future development as
a reliable and sustainable steel and vanadium producer and
significant local employer, and are certainly pleased to make this
strategic investment in Highveld as a part of global EVRAZ
group."
Commenting on the announcement by EVRAZ plc, Trade and Industry
Minister Rob Davies said:
"The Department of Trade and Industry (the "dti") welcomes the
transaction as a major step on the road to creating black
industrialists. The South African Government has long held the view
that the local steel sector is a critical pillar of regional
industrial and economic development. Therefore, the dti views this
transaction as a major development for the local steel industry and
we welcome the fact that a South African entity will be holding a
significant stake in this strategic asset. The steel sector is of
critical importance to South Africa's infrastructure investment
programme, amongst others, and it is in this light that we are
watching this transaction and other developments with keen
interest."
###
For further information:
Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
London: +44 207 832 8990 Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium
business with operations in the Russian Federation, Ukraine,
Kazakhstan, USA, Canada, Czech Republic, Italy and South Africa.
EVRAZ is among the top steel producers in the world based on crude
steel production of 16.1 million tonnes in 2013. A significant
portion of the company's internal consumption of iron ore and
coking coal is covered by its mining operations. The company's
consolidated revenues for the year ended 31 December 2013 were
US$14,411 million, and consolidated EBITDA amounted to US$1,821
million.
EVRAZ Highveld Steel and Vanadium (EHSV) is South Africa's
second largest steel maker and the primary producer of medium and
heavy structural sections. It became part of EVRAZ group in 2007.
In 2013, EHSV produced 176 thousand tonnes of plate, 129 thousand
tonnes of coil, 197 thousand tonnes of sections and 49 thousand
tonnes of vanadium slag. It provides employment to more than 2,300
employees and is a strategic enabler in South African
infrastructure development.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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