Evraz Group S.A. Agrees to Acquire 50% Interest in Yuzhkuzbassugol
Moscow, December 9, 2005 – Evraz Group S.A. (LSE: EVR), one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, today announced it has agreed to acquire a 50% stake in Joint Stock Company Yuzhkuzbassugol, a leading Russian producer of coking coal, from Crosland Limited for US$675 million.
The acquisition is to be financed from own funds and the proceeds of the recent Eurobond issue.
As a transaction with a related party it has been conducted on the basis of an independent valuation of Yuzhkuzbassugol and was approved by all three of Evraz Group S.A.’s independent non-executive directors.
James W. Campbell, one of Evraz Group S.A.’s non-executive directors and Chairman of Evraz Group S.A.’s Strategy Committee, commented, “The acquisition is an important component of Evraz’s stated long-term commitment to develop a financially robust mining division, particularly in the coking coal and iron ore sectors. I can confirm the way in which this transaction was conducted ?onforms to best practice corporate governance standards and reflects well on the new management approach instilled by Mr Abramov and his senior management colleagues.”
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