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%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
