Gute NEWS!
17.10.2007 16:27
Mechel Announces Fulfillment of Financial Obligations to Acquire
the Shares of Yakutugol OJSHC, Shares of Elgaugol OAO, and Real
Estate Complex
MOSCOW, October 17 /PRNewswire/ --
Mechel (Nachrichten) OAO (NYSE: MTL), one of the leading Russian
mining and metals companies, announces the fulfillment of its
financial obligations related to the previously announced winning
of the auction to acquire Yakutugol OJSHC comprising 75% of its
charter capital less one share, shares of Elgaugol OAO comprising
68.86% of its charter capital, and the real estate complex.
As the result of the auction held on October 5, 2007, Mechel
acquired 3,031,488 ordinary registered shares of Yakutugol OJSHC
comprising 75% of its charter capital less one share, 586,000
ordinary registered shares of Elgaugol OAO comprising 68.86% of its
charter capital, and the real estate complex for a total of RUR58.2
billion (approximately US$2.3 billion).
Pursuant to the purchase and sale agreement, the winner is to
acquire the ownership of the shares of Yakutugol OJSHC, shares of
Elgaugol OAO, and the real estate complex upon 100% payment of the
tendered amount.
Mechel has completely performed its financial obligations regarding
payment for the price of the stakes in Yakutugol OJSHC and Elgaugol
OAO and the real estate complex. Upon completion of the
transferring of the ownership and making a respective record in the
securities' register, Mechel will become the fully legitimate owner
of the controlling stakes in the companies.
"We are pleased to announce that Mechel fulfilled all its financial
obligations under the transaction ahead of schedule. Mechel
financed the transaction through a combination of its own cash and
borrowed funds, most of which were provided by VTB Bank.
The
acquisition of Yakutugol OAO, which mines approximately 10.0
million tonnes annually, will enable Mechel to fulfill its
strategic objective to mine about 30.0 million tonnes of coal next
year. Once mining operations at the Elga project reach the planned
capacity of approximately 30.0 million tonnes, Mechel will become
one of the world largest coal companies with the annual output of
over 60.0 million tonnes," Mechel's Chief Operating Officer
Alexey Ivanushkin commented.
Mechel is one of the leading Russian mining and metals companies.
Mechel unites producers of coal, iron ore, nickel, steel, rolled
products, and hardware. Mechel products are marketed domestically
and internationally.

