Evraz Ready To Raise Free Float To Meet FTSE-100 Rules -CEO

U.K.-listed, Russian steelmaker Evraz PLC (EVRZ.LN) is prepared to raise its free float in accordance with any changes to the free-float requirement on the FTSE-100 index, the company's chief executive said Monday.

The FTSE Group is considering strict enforcement of a 25% minimum free-float requirement for U.K.-listed companies, according to people familiar with the matter. If imposed, six current FTSE 100 companies --Fresnillo PLC (FRES.LN), Essar Energy PLC (ESS.LN), Eurasian Natural Resources Corp. PLC (ENRC.LN), Ferrexpo PLC (FXPO.LN), Evraz and Glencore International PLC (GLEN.LN)-- would have to raise their free floats. Evraz has a 24.8% free float at the moment.

"If this regulation is imposed, we could place a very small stake into the market and be compliant. It's not an issue," Alexander Frolov told journalists in a press briefing at the LSE following the FTSE Group's announcement that Evraz will enter the FTSE-100 index. "For us, the difference is pretty much cosmetic," he added.

Evraz began its first day of unconditional trading in London on Nov. 7 and last week was granted entry into the coveted FTSE-100 index. It will formally enter the FTSE-100 index on Dec. 19.

Frolov said the company decided to seek a primary listing in London and entry into the FTSE-100 index to widen its investor base, which will increase its share liquidity and create a stronger currency with which to pursue acquisitions in the future.

Several Russian companies have listed in the U.K., including Polymetal International PLC (POLY.LN), this year to tap deeper pools of liquidity and gain a better valuation, which would allow them to issue new debt or equity more easily and cheaply to pursue growth opportunities.

-By Alex MacDonald and Francesca Freeman, Dow Jones Newswires; [phone]; [e-mail] (Andrew Peaple in London contributed to this story.)