Evraz Group S.A. to acquire Vitkovice Steel in Czech Republic
- Selected by the Government of Czech Republic in privatisation tender auction
- Acquisition in line with strategy to develop Group’s presence in the established European markets
Moscow, July 13, 2005 – Evraz Group S.A. (LSE: EVR), one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, today announces it has been selected by the Government of Czech Republic to acquire Vitkovice Steel, the largest platemaker in the Czech Republic, for CZK7.05 billion (approximately ?233 million).
Evraz Group will acquire 98.96% of the shares in Vitkovice in the privatization and take control of the business within the next three months, subject to approval from competition authorities. Evraz Group will then begin implementing a new business plan for Vitkovice focused on improving its efficiency and international competitiveness.
The acquisition will be financed from a combination of debt and existing facilities, including the capital raised from the Group’s initial public offering on the London Stock Exchange in June 2005.
The acquisition is in line with Evraz Group’s stated strategy to develop its presence in the established European markets.
Commenting, Alexander Abramov, Evraz Group Chairman and Chief Executive Officer, said:
“We are very pleased with the Czech Republic Government’s decision to award the Vitkovice privatization to Evraz. We believe our bid was the strongest in meeting all the requirements of the Government. This acquisition will allow the company access to growing Central and Eastern European (CEE) steel market. The Czech Republic, in particular, is enjoying strong economic growth following its recent entrance to the European Union. We look forward to welcoming Vitkovice into the Evraz Group and to developing it into a world-class business.”
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