22 June 2007
Novolipetsk Steel (NLMK) agrees to sell Lipestkcombank
Novolipetsk Steel (LSE: NLMK), a leading Russian steel producer, today announced that it has agreed to sell its 50.08% stake in OJSC Lipetskcombank to OJSC Bank Zenit for approximately USD 44 million. Deutsche Bank advised NLMK on this disposal.
This divestment is in line with NLMK’s previously announced internal restructuring plan. One of key steps of this plan is to optimize the asset portfolio of NLMK. In 2006, OJSC Lipetskcombank was classified as non-core asset according to a decision of NLMK’s Board of Directors.
The parties expect to complete the transaction by the end of Q3 2007.
OJSC Lipetskcombank is based in Lipetsk. The bank provides general banking services for corporate and retail customers in accordance with its general license from the Central Bank of Russia, a license for foreign currency operations and a license for brokerage activity. The capital base of Lipetskcombank as at 01 January 2007 was approximately USD 44 million. The net income for 2006 amounted to USD 6.5 million.