EVRAZ PLC enters into agreement to dispose of EVRAZ Sukha Balka

Date of publication: 26.05.2017

26 May 2017 - EVRAZ plc (LSE: EVR) ("EVRAZ" or the "Company") announces today that its fully owned subsidiary Evraz Group S.A. signed an agreement to dispose of the entire issued share capital of Kadish Limited (a holding company of EVRAZ Sukha Balka (“ESB”)) to BERKLEMOND INVESTMENTS LTD (a company of the DCH Group) for US$110 million of gross consideration, adjustable for the actual level of ESB’s working capital and debt (“Transaction”). The Consideration will be payable in several instalments: an initial US$25 million payable within two business days after signing of sales and purchase agreement, with the rest to be paid by 31 December 2017.

The Transaction proceeds will be applied to general corporate purposes including, but not limited to reduction of the outstanding indebtedness of the Company.

ESB ore enrichment plant is one of the leading Ukrainian enterprises specialising in iron ore underground mining. The annual production capacity of the plant is approximately 3.1 million tonnes of iron ore. In 2016 ESB mined over 2.5 million tonnes of lumpy ore. ESB has been a subsidiary of EVRAZ since 2007.

In 2016 ESB generated US$145 million of revenue from continuing operations. As of 31 December 2016, ESB had gross assets of US$238 million. For the year ended 31 December 2016, it produced a gross profit of US$25 million, US$26 million of EBITDA and a loss before tax from continuing operations of US$5 million.

The ESB employs just over 3400 people.




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