EVRAZ Completes Acquisition of Indirect Controlling Interest in OJSC Rapadskaya
01/16/2013 - EVRAZ announced that it has completed the acquisition of a further 50% interest in Corber Enterprises Limited, which holds an 82% interest in OJSC Raspadskaya and its subsidiaries.
Further to the announcement on 4 October 2012 by EVRAZ plc that it had agreed the terms of an acquisition of a further 50% interest in Corber Enterprises Limited, which holds an 82% interest in OJSC Raspadskaya and its subsidiaries, from Adroliv Investments Limited, a company jointly owned in equal share by two shareholders, EVRAZ announced that it has completed the acquisition, subject to admission to listing and to trading.
Pursuant to the terms of the acquisition, EVRAZ has issued 132,653,006 new ordinary shares (representing 9.9% of the existing issued share capital) to the shareholders of the seller, with each receiving 50% of the new Evraz shares issued. The new EVRAZ shares will be admitted to the Official List of the UKLA and to trading on the Main Market of the London Stock Exchange with effect from 8am on 16 January 2013.
As consideration for the acquisition, EVRAZ will further (i) issue 33,944,928 new warrants to subscribe for 33,944,928 new ordinary shares in EVRAZ representing 2.53% of the existing issued share capital of EVRAZ, and (ii) pay an amount, in cash, of US$201,999,280, payable in four equal installments in Q1, Q2, Q3 2013 and Q1 2014, with each shareholder of the seller receiving 50% of the warrants and 50% of the cash consideration. The warrants may be exercised at any time between 12 months and 15 months after completion of the acquisition and the warrants contain customary provisions relating to adjustments. Upon exercise of the warrants, it is expected that the shareholders of the seller will own 11.06% of EVRAZ.
