Agreement for sale of Dneprometiz
PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrated steel and steel-related mining companies, announces that its Austrian subsidiary Severstal-Trade Gmbh has entered into a definitive agreement to sell Dneprometiz to a German private company. Dneprometiz is the Ukrainian enterprise managed by Severstal-metiz, a group of companies which unites Severstal metalware assets.
The sale of Dneprometiz will lead to further efficiency increase at Severstal-metiz and will also allow Severstal to further enhance its profitability.
Severstal has acquired 60% shares of Dneprometiz in 2006 and further increased its stake to 98,6%. Currently this stake is fully for sale. The transaction is expected to complete in 2015, subject to antitrust review and other customary closing conditions.
As of now, Dneprometiz continues to demonstrate high capacity utilization but it is not operationally linked to Severstal’s plants in Russia.