EVRAZ enters into agreement to dispose of its stake in Delong
EVRAZ Group S.A. (”EVRAZ”) today announced that it has entered into a Share Purchase Agreement with Best Decade Holdings Limited to dispose of its 15.04% stake in Delong Holdings Limited (“Delong”), a leading SGX-listed steel producer of hot-rolled steel coil, for US$91.7 mln (“Transaction”).
The average price per share amounts to SGD 7.42, representing a 65% premium over the current market price, which EVRAZ believes is a highly attractive opportunity to exit the investment, which has been seeing a price hike since September 2017.
The Transaction proceeds will be applied to general corporate purposes. Evraz intends to give notice that it will cease to be a substantial shareholder of the company within two business days from the completion date under the Share Purchase Agreement.
SGX-listed Delong is a steel manufacturing group headquartered in Beijing, People’s Republic of China. Its production base is located 430km southwest of Beijing in Hebei Province, placing it in proximity to raw material sources and an extensive client base encircled by the Bohai Economic Circle. As a dedicated hot-rolled coil manufacturer, Delong specialises in the supply of steel in such specifications for the infrastructure, pipe-making, cold-rolled coil, machinery and automotive industries in the People’s Republic of China. Delong has been listed on the Main Board of Singapore Exchange Securities Trading Limited since March 2, 2006.