NEWS & EVENTS: Breaking News
19.05.2008 10:30
May 19. The charter capital of Mechel-Mining which serves as a consolidation hub for mining assets of Mechel (RTS: MTLR), and whose IPO the group plans to launch, will amount to RUB 122 mn. According to Mechel-Mining’s press release, the company’s board approved the decision to launch an initial public offering in favor of the founder on Friday. The company will issue 12,217,800 shares with RUB 10 par value. They will be paid for by Mechel’s shares in Coal Company South Kuzbass (RTS: UKUZ) and Korshunovsky Mining and Processing Integrated Works (RTS: KOGK) plus RUB 500 mn in cash. As reported earlier, Mechel Group incorporated Mechel Mining in April. In addition, in late February the group confirmed plans to launch an IPO of its mining assets and the group’s main beneficiary and general director Igor Zyuzin estimated them at least at USD20 bn at that time. The group’s Senior VP for Economics and Management Mukhamed Tsikanov told journalists at that time that about 20% of these assets are to be offered in an IPO. According to Tsikanov, the parameters have been set for the mining segment’s IPO and the group has started to work out potential IPOs of Mechel’s metallurgical and utilities segments. The segments are to be spun off into standalone companies by establishing Mechel’s subsidiaries and in addition, no conversion or provision of shares in subsidiaries to the group’s shareholders is envisaged.
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