Evraz commences disposal of Highveld selected assets
July 2, 2007 - Evraz Group S.A. (LSE: EVR) ("Evraz") announces that Evraz has formally commenced the process of disposing of some of the selected assets of Highveld Steel and Vanadium Corporation Limited ("Highveld") in accordance with Evraz's commitments to the European Commission and the South African Competition Tribunal.
Prospective purchasers are expected to include established vanadium industry participants, other steel industry players and private equity investors. The competition authorities require that the ultimate purchaser must:
be independent of and unconnected to Evraz and Highveld;
have the financial resources, proven expertise and incentive to maintain and develop the divested business as a viable and active competitive force in competition with Evraz and other competitors; and
- neither be likely to create competition concerns nor give rise to a risk that the implementation of the divestiture will be delayed, and must, in particular, reasonably be expected to obtain all necessary approvals from the relevant regulatory authorities for the acquisition of the divested assets.
Evraz has appointed Standard Bank of South Africa Ltd to advise on the divestiture.
For further information interested parties can contact Sandra du Toit, Corporate and Investment Banking division, Standard Bank of South Africa Ltd, tel. +27 (0) 11 636 6216, Sandra.duToit@standardbank.co.za.
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Notes for editors and interested parties:
Evraz obtained the regulatory approvals for its acquisition of a majority stake in Highveld on the condition that Evraz divests or procures that Highveld divests, of selected assets, including Highveld's Vanchem Operations, Highveld's 50% shareholding in South Africa Japan Vanadium (Proprietary) Limited and either an equity interest or a discrete portion in the Mapochs Mine, which, together, form an integrated vanadium supply chain, from raw vanadium bearing titaniferous magnetite ore, to the sales and distribution of vanadium oxides and ferrovanadium throughout the world.
The Mapochs Mine produces vanadium-rich iron ore providing a quality feedstock for Vanchem, world's leading and most experienced vanadium converter. The balance of Vanchem's feedstock supplies comes from Highveld in the form of vanadium bearing slag, a by-product of Highveld's steelmaking operations, which is also supplied to a number of vanadium converters in Europe and South Africa. As part of the commitments given to the European and South African antitrust authorities, Evraz will continue to provide Vanchem with vanadium bearing slag in the amount sufficient to cover Vanchem's needs up to the current capacity.
Vanadium products are predominantly used as a micro alloy in certain steels to increase its yield and tensile strength. Since its foundation in early 1960s, Highveld Steel and Vanadium Corporation has been a significant vanadium feedstock and vanadium product supplier.
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For further information:
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