4th May 2007 17:40
Evraz Group S.A.04 May 2007 Evraz purchases Anglo American's stake in Highveld Steel and Vanadium Corporation May 4, 2007 - Evraz Group S.A. (LSE: EVR) ("Evraz") today announced the purchaseof a 29.2% stake in Highveld Steel and Vanadium Corporation ("Highveld") fromAnglo American plc ("Anglo American") for US$238 million, thus exercising anoption to increase its stake in Highveld pursuant to an earlier agreement. In an agreement announced on July 14, 2006, Evraz purchased a 24.9% stake inHighveld from Anglo American. Evraz had an option to increase its stake inHighveld once regulatory approvals are received, including those fromcompetition authorities in the European Union and South Africa. Under theconditions of the clearances granted to Evraz in February and April 2007 by theEuropean Commission and competition authorities in South Africa, Evraz hascommitted to divest certain Highveld's vanadium production facilities andrelated assets, including the Vanchem operations located in Witbank, Republic ofSouth Africa. Also, Evraz will grant access to Highveld's Mapochs Mine, divestits 50% joint venture holdings in South Africa Japan Vanadium (Proprietary) Ltd.and maintain existing vanadium feedstock supply agreements with certaincustomers. As of May 4, 2007, Evraz owns approximately 54.1% of all outstanding shares inHighveld. Under South African law, Evraz is required to make a mandatory generaloffer to all shareholders of Highveld after its ownership position has exceeded35%. The offer will be made within the next 30 calendar days. Commenting on the deal, Alexander Frolov, Evraz's Chairman and CEO, said:"Through Highveld, Evraz is gaining valuable access to the growing South Africansteel and construction sectors which are expanding, driven by strong demandgrowth and supported by new mining, infrastructure and industrial projects. Withthe acquisition of Highveld Steel and Vanadium Corporation Evraz also becomesthe leading player in vanadium globally. We would like to reiterate ourcommitment to advancing black economic empowerment at Highveld." # # # For further information: Evraz GroupCorporate Affairs and Investor RelationsIrina KibinaTel: +7 495 232 [email protected] Evraz Group S.A. is one of the largest vertically-integrated steel and mining businesses. In 2006, Evraz Group produced 16.1 million tonnes of crude steel. Evraz Group's principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in Italy, VitkoviceSteel in the Czech Republic, and Evraz Oregon Steel Mills headquartered in the USA. Its fast-growing mining businesses comprise Evrazruda, the Kachkanarsky (KGOK) and Vysokogorsky (VGOK) iron ore mining complexes and Neryungriugol coal company and equity interests in the Raspadskaya and Yuzhkuzbassugol coal companies. The mining assets enable Evraz Group to be a vertically-integrated steel producer. Evraz Group also owns and operates the Nakhodka commercial sea port, in the Far East of Russia, which facilitates its access to Asian export markets. Evraz vanadium operations comprise Strategic Minerals Corporation, USA, and a 54.1% equity interest in Highveld Steel and Vanadium Corporation, South Africa.For further information visit www.evraz.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Anglo American