Evraz Plc EVRAZ sells EVRAZ Vitkovice Steel (0558E)

TIDMEVR

RNS Number : 0558E

Evraz Plc

04 April 2014

EVRAZ sells EVRAZ Vitkovice Steel

4 April 2014 - EVRAZ plc (LSE: EVR) ("EVRAZ" or the "Company") announces the signing and closing of the sale of its wholly-owned subsidiary EVRAZ Vitkovice Steel ("EVS") to a group of private investors (Martinley Holdings Limited, Nabara Holdings Limited, Vitect Services Limited, Hayston Investments Limited and Dawnaly Investments Limited, with each buying 20% of EVS), for a gross consideration of US$89 million adjustable for the actual level of EVS working capital. In addition the buyers have assumed US$198 million of EVS debt liabilities, including the repayment of US$128 million of EVRAZ's inter-company debt.

EVRAZ will apply the sales proceeds for general corporate purposes, including, but not limited to, the repayment of some of its debt.

EVS, which has been a part of the Company since November 2005, is a manufacturer of steel hot rolled products located in Ostrava in the Czech Republic. In 2013, EVS produced 571 thousand tonnes of steel products.

According to EVS standalone financial statements prepared in accordance with IFRS, in 2013 EVS generated US$442 million of revenue from continuing operations. As of 31 December 2013, EVRAZ Vitkovice Steel had gross assets of US$278 million. For the year ended 31 December 2013, it produced a gross profit of US$31 million, US$(2) million of EBITDA and a loss before tax from continuing operations of US$32 million. This loss includes, inter alia, foreign exchange loss of US$8.5 million, interest expense of US$6.6 million and other expenses related to stoppages of operations of US$9.7 million.

The plant employs just over 1,000 people.

It is expected that the transaction will not affect EVS production or the composition and number of its work force.

Alexander Frolov, EVRAZ's CEO, said,

"We continue to focus on streamlining our business, concentrating management's efforts on the key assets and deleveraging. The disposal of Vitkovice Steel is part of that strategic initiative."

###

For further information:

Media Relations:

Vsevolod Sementsov

VP, Corporate Communications

   London: [phone]               Moscow: [phone] 

[e-mail]

Investor Relations:

Sergey Belyakov

Director, Investor Relations

   London: [phone]               Moscow: [phone] 

[e-mail]

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Kazakhstan, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 16.1 million tonnes in 2013. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2012 were US$14,726 million, and consolidated EBITDA amounted to US$2,012 million. The H1 2013 consolidated revenue was US$7,362 million and the H1 2013 EBITDA was US$939 million.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCQKQDPPBKKKQK