Evraz rises on Raspadskaya approval

Steel, mining and vanadium group Evraz has received pre-transfer merger clearance from the Russian Federal Antimonopoly Service in relation to its acquisition of an indirect controlling interest in Raspadskaya and its subsidiaries.

Steel, mining and vanadium group Evraz has received pre-transfer merger clearance from the Russian Federal Antimonopoly Service in relation to its acquisition of an indirect controlling interest in Raspadskaya and its subsidiaries.

Raspadskaya is one of Russia's largest producers of coking coal and a supplier to the Russian steel firm.

As previously reported, Evraz is adding to its existing stake with the acquisition of a 50% interest in Raspadskaya from Adroliv Investments in a deal which will reduce Adroliv's stake to 32%.

As consideration for the purchase Evraz will issue to Adroliv 132.7m new shares, representing 9.9% of the existing issued share capital of Evraz, plus 33.9m new warrants to subscribe for 33.9m new shares representing 2.53% of the existing issued share capital of Evraz.

The steel firm will also pay $1,949.80 in cash for each of 103,600 ordinary Corber Enterprises shares, payable in four equal quarterly instalments; Corber is the investment vehicle which owns the stake in Raspadskaya. Evraz already had a 50% interest in Corber prior to the latest deal.

The warrants may be exercised at any time between 12 months and 15 months after completion of the acquisition. Upon exercise of the warrants, it is expected that the sellers would own 11.06% of Evraz.

The share price rose 3.19% to 262.40p by 09:35 on Thursday.

NR

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