24th May 2007 13:26
OAO Severstal24 May 2007 SEVERSTAL Mira str. 30, RU-162600, Cherepovets, Vologda region, RussiaPhone: +7 (8202) 53 14 18, fax: +7 (8202) 53 12 56, www.severstal.com For Immediate Release24 May 2007 Severstal buys a further 9% of Lucchini for 85.2 million OAO Severstal (RTS: CHMF; LSE: SVST) today announces the purchase of a further 9% stake in Lucchini SpA for 85,200,000. Lucchini produces high-quality steelsand long products in Italy and France and has a European distribution network.Its markets include automotive and railways. Severstal purchased the additional stake in Lucchini through its 100 %subsidiary Upcroft. According to the terms of the deal Severstal also will get apro rata number of warrants converted into Lucchini shares. Severstal now owns79.82% of the shares of Lucchini. Commenting on the deal, Alexey Mordashov, Severstal Chief Executive, said, "Weare delighted to be increasing our investment in Lucchini. It is a greatbusiness which contributed $3.3bn of revenues to Severstal in 2006. We plan tocontinue to invest in the business to further improve productivity andefficiency." Giuseppe Lucchini, Lucchini Spa President and shareholder, said "Such decisionhas been taken in harmony with Severstal and with its main Shareholder, thanksto the good collaboration and to the human relationship that have been createdfor over two years." About Severstal Severstal is an international steel producer with a listing on the RussianTrading System and the London Stock Exchange. Incorporated in 1993, the companyfocuses on high value-added and unique niche products and has a successful trackrecord of acquiring and integrating high-quality assets in North America andEurope. Severstal owns mining assets in Russia, thus securing its supplies ofraw materials. In 2006 Severstal produced 17.6 million tonnes of steel and had revenues of$12.4bn, PBT of $1.8bn and EPS of $1.27. In April 2007 the company had a marketcapitalization of $13.6bn. The majority of the company's stock (82.37%) belongs to Alexei Mordashov, withthe remaining 17.63% owned by institutional investors and employees. Severstal'ssupervisory board has 10 members, five of whom are independent non-executivesincluding a chairman. The company has recently put in place corporate governancesystems which match international standards. OAO SeverStal (Russia)Dmitry Druzhinin, Investor RelationsOlga Antonova, Natalia Ivanova, Public RelationsTel (495) 540 77 66 Tulchan Communications (UK)Dominic Fry/Tom MurrayTel +44 207 353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SVST.L