Feb 2 2009
Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces that Evraz and OAO TMK and its affiliates (“TMK”) have closed the transaction on the sale by Evraz of the remaining 49% in NS Group to TMK.
In March 2008, the Company entered into an agreement with SSAB, a Swedish steel company, to acquire IPSCO’s Canadian and US businesses, while simultaneously entering into a back-to-back agreement with TMK, Russia’s leading tubular player. The back-to-back transaction consisted of a sale of the acquired US tubular and pipe businesses, including 51% in NS Group, to TMK. In addition, Evraz and TMK signed a put/call option agreement that gave Evraz the right to sell and to TMK the right to buy the remaining 49% in NS Group. The put option could be exercised by the Company not earlier than October 22, 2009. The call option was exercisable by TMK in respect of any shareholding in NS Group any time starting from June 12, 2008.
Following the exercise of the call option by TMK which decided to exercise it in respect of the whole stake in NS Group held by Evraz, the resulting sale and purchase transaction has been completed at an exercise price of US$508 million.
The proceeds from the sale will be kept in reserve against future interest payments on the Company’s debt in 2009.