Severstal announces sale of Mini-Mill Balakovo (807435)

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 PAO Severstal (SVST) 
Severstal announces sale of Mini-Mill Balakovo 
 
06-May-2019 / 14:10 MSK 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
               Severstal announces sale of Mini-Mill Balakovo 
 
      May 6, 2019, Moscow - PAO Severstal (the "Company") one of the world's 
     leading vertically integrated steel and steel-related mining companies, 
       announces that it has entered into a definitive agreement with Abinsk 
            Electric Steel Works LTD for the sale of Mini-Mill Balakovo. The 
                      consideration of the transaction will be $215 million. 
 
 The transaction is expected to complete in first half of 2019 following the 
                         receipt of approvals and other standard conditions. 
 
                            Alexander Shevelev, CEO of Severstal, commented: 
 
   "Following the sale of Mini-Mill Balakovo, we plan to focus on developing 
      steel production at our main asset, the Cherepovets Steel Mill. We are 
  confident that this will enable us to streamline our internal processes to 
  execute our updated strategic priorities successfully. We are committed to 
        providing our customers with integrated solutions and increasing our 
    production of high value-added products. At the same time Severstal will 
 continue to supply long products via our long product facilities at CherMK. 
     Mini-Mill Balakovo was the first producer of long products in the Volga 
 Federal District and has become known as a trusted supplier of high-quality 
    products. We believe that the Mini-Mill still has a lot of potential and 
  will benefit from the new shareholder's focus on long product production." 
 
  Vitaly Babenko, General Director of the Abinsk electrometallurgical plant, 
                                                                      noted: 
 
   "Mini-Mill Balakovo is a new-generation facility, which produces demanded 
      products for the construction industry. Modern facilities of the plant 
       combine the production of high-grade steel and the production of long 
    products on a high-speed rolling mill. The acquisition of the company is 
      fully consistent with the strategy of our company and will allow us to 
  strengthen our position in the market. We welcome the professional team of 
       the plant and are confident that Mini-Mill Balakovo will continue its 
                successful development within the structure of our company". 
 
   Mini-Mill Balakovo has an annual capacity of 1 million tonnes of profiled 
  iron for building materials (reinforcement, angle, channel). It produces a 
 range of 40 different products. The mill has produced over three and a half 
                     million tonnes of products since it was first launched. 
 
                      Citigroup acted as financial advisor to PAO Severstal. 
 
For further information, please contact: 
 
Investor Relations 
 
Evgeny Belov 
 
T: [phone] 
 
[e-mail] 
 
Public Relations 
 
Anastasia Mishanina 
 
T: [phone] 
 
[e-mail] 
 
                                    *** 
 
P?? Severstal is one of the world's leading vertically-integrated steel and 
steel related mining companies, with assets in Russia, Latvia and Poland. 
Severstal is listed on RTS and MICEX and the company's GDRs are traded on 
the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142 
million in 2018. Severstal's crude steel production in 2018 reached 12.0 
million tonnes. www.severstal.com 
 
ISIN:          US8181503025 
Category Code: UPD 
TIDM:          SVST 
LEI Code:      213800OKDPTV6K4ONO53 
Sequence No.:  8516 
EQS News ID:   807435 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

May 06, 2019 07:10 ET (11:10 GMT)