Moscow, Russia â October 29, 2013 - (CRWE Press Release) â Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, reports the sale of a 28-percent share in Vanino Sea Trade Port OAOâs equity capital.
Mechel Group, as represented by Mecheltrans OOO, sold some 28% of the portâs equity capital to an outside investor, retaining a minor share package for itself. The transaction amounted to 5.04 billion rubles (approximately 158.43 million US dollars*).
Earlier the company closed the deal on acquiring this package from the company En+, which deal was announced on January 31, 2013. The deal with En+ was fully funded by the aforementioned investor and thus had no bearing on Mechel Groupâs leverage.
The consortium of investors is not interested in transhipping their products through Port Vanino, which will enable Mechel to use the portâs entire capacity in the companyâs interests.
Access to Port Vaninoâs transhipment capacities significantly enhances Mechelâs export potential in Asia and the Pacific and ensures guaranteed sales volumes for the Groupâs coal products, taking into account the Elga deposit development.
*Based upon the Russian Central Bank exchange rate of 31,8119 RUB/USD as of October 29, 2013.
Mechel is an international mining and steel company which employs over 80,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high valueadded products.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned âRisk Factorsâ and âCautionary Note Regarding Forward-Looking Statementsâ in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
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Source: Mechel OAO
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.