Jan 3 2006
OJSC Novolipetsk Steel, NLMK today announced that it has agreed to sell its entire stake of 12% (2,336,867 ordinary shares) in Lebedinsky GOK to CJSC “OEMK-Invest” for USD 400 million in cash. Lebedinsky GOK is an iron ore mining and processing enterprise in Russia.
NLMK has also agreed to acquire from the companies affiliated to the shareholders of Lebedinsky GOK an additional 25% stake in KMA Ruda, bringing its total ownership to a controlling stake of 58%. KMA Ruda is a mining company located within 350 kilometers from NLMK’s production facilities in Lipetsk. The enterprise already supplies NLMK with iron ore concentrate, maintaining an annual production capacity of 1.8 million tonnes. This acquisition enables NLMK to consolidate KMA Ruda on its balance sheet and to fully control its operations.
The two transactions are implemented within the framework of NLMK's strategy of active management of its asset portfolio, in which NLMK seeks to increase control over its core mining and steel assets and to divest its non-core and portfolio investments.
Mr. Anton Bazulev, NLMK’s Head of Investor Relations commented: “The active management of our asset portfolio is an integral part of NLMK’s growth strategy. The well-timed adjustments of our asset positions are vitally important to strengthening our market leadership.”