Sale of 49% in NS Group to TMK completed

 

TIDMEVR 
 
RNS Number : 6559M 
Evraz Group S.A. 
02 February 2009 
 

for immediate release 
 
 
Evraz completes the sale of 49% in NS Group to TMK 
 
 
February 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. 
 
 
### 
 
 
For further information: 
 
 
Evraz Group 
Corporate Affairs and Investor Relations 
Alexey Ivanov 
Tel: [phone] 
[e-mail] 
 
Evraz Group S.A. is a large vertically integrated steel, mining and vanadium 
business with operations in the Russian Federation, Ukraine, Europe, USA, Canada 
and South Africa. Evraz produced 16.4 million tonnes of crude steel in 2007, 
ranking it among the 17 largest steel producers in the world by volume. Its 
mining operations cover 93% of iron ore and over 100% of coking coal internal 
consumption. Evraz's total consolidated revenues for the year ended 31 December 
2007 were US$12,808 million and consolidated EBITDA was US$4,254 million. For 1H 
2008 the consolidated revenues were US$10,726 million and EBITDA - US$3,700 
million. For further information visit www.evraz.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 DISBUGDDUUGGGCD