03 December 2007
The following amendment has has been made to the Acquisition
announcement released today at 09:48 under RNS No 9893I.
In the second paragraph it should read Severstal will acquire 100% of Baracom,
and not Severstal will acquire 100% of Barocom as previously stated.
All other details remain unchanged.
The full amended text is shown below.
3 December, 2007
Severstal is pleased to announce a consolidation of its holding in US steel
Severstal will acquire 100% of Baracom from Severstal's CEO, Alexey Mordashov,
which owns 18.5% and controls 79.9% of Severcorr, for $84.4 million.
Severstal is investing in Severcorr's assets at investment cost, as opposed to
fair value, which would have resulted in a substantially higher acquisition
price. When the deal closes, Severstal will hold 71.1 % of the shares in
Chris Clark,Chairman of Severstal's Board of the Directors, said: 'At this
favorable price, we believe that the consolidation of our stake in SeverCorr is
in the best interests of Severstal's shareholders and adds considerable
'SeverCorr' is Severstal's and its American partners' super-modern mini-mill,
located in Columbus, Mississippi, (USA), utilizing electric steel melting
technology. The plant is capable of producing up to 1.3 million tons of
high-quality steel per year. It employs 450 people and is located in close
proximity to railway and major highway networks. The plant is also well-placed
to benefit from the automobile plants currently under construction in the south
of the USA. The mini mill's products are intended for use in the automotive,
construction, agrarian, pipe-making and machine-building sectors.
Severstal is an international steel producer with a listing on the Russian
Trading System and the London Stock Exchange. Incorporated in 1993, the company
focuses on high value added and unique niche products and has a successful track
record of acquiring and integrating high-quality assets in North America and
Europe. Severstal owns mining assets in Russia, thus securing its supplies of
raw materials. In 2006 Severstal produced 17.6 million tonnes of steel and had
revenues of $12.4bn, PBT of $1.8bn and EPS of $1.27.
Severstal, Investor Relations - Russia
Severstal, Public Relations - Russia
+7 495 540 77 66
Tulchan Communications - UK
Dominic Fry/Tom Murray
+44 207 353 4200
This information is provided by RNS
The company news service from the London Stock Exchange