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.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

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.

Advertisement
Advertisement - Article continues below

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

Advertisement

Recommended

Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Visit/investments/stocks-and-shares/share-tips/600636/class-acts-going-cheap-buy-into-europes-best
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Visit/investments/property/601065/what-does-the-coronavirus-crisis-mean-for-uk-house-prices
Property

What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020
Visit/personal-finance/mortgages/601045/coronavirus-what-it-means-for-your-mortgage-or-your-rent
Mortgages

Coronavirus: what it means for your mortgage or your rent

Ruth Jackson-Kirby looks at all the key questions for owners, renters and landlords affected by the coronavirus crisis.
29 Mar 2020
Visit/economy/uk-economy/601063/the-uks-bailout-of-the-self-employed-comes-with-a-hidden-catch
UK Economy

The UK’s bailout of the self employed comes with a hidden catch

The chancellor’s £6.5bn bailout of the self employed is welcome. But it has hidden benefits for the taxman, says Merryn Somerset Webb.
27 Mar 2020
Visit/economy/small-business/601073/furlough-what-does-it-mean-and-how-does-it-affect-me
Small business

Furlough: what does it mean and how does it affect me?

Many companies have “furloughed” employees after they have shut down because of the coronavirus. But what does furlough mean and how does the scheme w…
30 Mar 2020