LONDON (ShareCast) - EVRAZ has completed the acquisition of a 50 per cent stake in Corber Enterprises, meaning that it has secured an indirect controlling interest in OJSC Raspadskaya, a Russian producer of coking coal and supplier to the London-listed steel firm.
The deal, first announced in October 2012, will see EVRAZ hold an 82% interest in Raspadskaya, making the enlarged group the largest producer of coking coal in Russia.
The acquisition has seen EVRAZ issue new ordinary shares representing 9.9% of its existing issued share capital to the seller of the Corber Enterprises stake, which will be admitted to the Official List in London on Tuesday morning.
EVRAZ will also issue new warrants to subscribe for new ordinary shares representing 2.53% of its existing issued share capital, and pay $202m in cash to the seller.
Speaking back in October, EVRAZ's Chief Executive Alexander Frolov said: "The acquisition will increase EVRAZ's coking coal self-coverage, which is consistent with EVRAZ's stated strategy of growth in the raw materials for steelmaking.
"Raspadskaya is already a key supplier of coal to EVRAZ and EVRAZ is Raspadskaya's largest customer. Through holding an equity interest in Raspadskaya since 10 March 2004 and having directors on the Board of OJSC Raspadskaya, EVRAZ has a clear understanding of the strengths and potential of Raspadskaya's business and is best positioned to benefit from acquiring an indirect controlling interest in Raspadskaya."