NLMK acquires additional stake in NSMMZ
Novolipetsk Steel (NLMK) is pleased to announce that on 15 July 2009 it acquired a 25% stake in NSMMZ, a Maxi-Group production facility, from Metallurgical Holding. NLMK’s ownership has increased to 57% including the shares that NLMK acquired in the loans-for-shares auction conducted on 25 June 2009.
Before this acquisition, a 25% stake in NSMMZ was pledged by one of NSMMZ’s creditors and was redeemed by NLMK by direct guarantee. The transaction was closed at a market price based on the results of an open auction for NSMMZ shares held on 25 June 2009.
This acquisition will enable NLMK to more efficiently manage its subsidiaries comprising its long steel segment. Moreover, since the load of financing investment and operational activities of Maxi-Group assets lay upon NLMK, the acquisition of the stake in the major production asset of Maxi-Group allows NLMK to provide guarantees while investing in Maxi-Group assets.
For further information:
Anton Bazulev +7 495 915 1575
Jon Simmons +44 207 831 3113