15th Dec 2021 09:59
(Alliance News) - Evraz PLC said on Wednesday said it has entered definitive terms for the demerger of its metallurgical coal interests under Moscow-based coal mining company, PJSC Raspadskaya.
The demerger will be effected by means of an in specie distribution of the shares in Raspadskaya, which holds the assets, directly to Evraz shareholders. This is estimated to be approximately 91% of the total ordinary shares in Raspadskaya.
The demerger will result in the creation of two distinct publicly listed businesses. Evraz said the demerger will allow each to pursue "tailored strategic, capital allocation and sustainability objectives" and added that it will serve the long-term interests of Evraz.
A shareholder circular in relation to the demerger has been submitted to the UK Financial Conduct Authority by the company for approval.
Evraz said it does not currently have sufficient distributable reserves to make the in specie distribution of all of its Raspadskaya shares therefore, as an interim step, the Evraz board proposes to capitalise the sum of USD8.2 billion currently standing to the credit of its profit and loss reserve by way of issuing certain capital reduction shares. Evraz said this will subsequently reduce the company's share capital by cancelling the capital reduction shares, allowing for sufficient distributable reserves for the demerger.
Evraz said it continues to expect a minimum annual dividend of USD300 million following the demerger.
The settlement date for the transfer is expected on April 7.
Shares in Evraz were down 0.3% at 605.00 pence each on Wednesday morning in London.
By Heather Rydings; [email protected]
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