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Evraz Completes Sale of 49% Stake in NS Group to TMK
02/03/2009 - Evraz and OAO TMK close the transaction on TMK’s acquisition of the remaining 49% of NS Group from Evraz.
Evraz Group announced that Evraz and OAO TMK and its affiliates have closed the transaction on Evraz’s sale of the remaining 49% in NS Group to TMK.
Evraz entered into an agreement with SSAB, Sweden, in March 2008 to acquire Ipsco’s Canadian and U.S. businesses, while simultaneously entering into a back-to-back agreement with TMK, Russia’s leading tubular player.
The back-to-back transaction comprised a sale of the acquired U.S. tubular and pipe businesses, including 51% in NS Group, to TMK.
The back-to-back transaction comprised a sale of the acquired U.S. tubular and pipe businesses, including 51% in NS Group, to TMK.
Evraz and TMK had also signed a put/call option agreement that gave Evraz the right to sell — and TMK the right to buy — the remaining 49% in NS Group. The put option could be exercised by the company not earlier than October 22, 2009. The call option was exercisable by TMK in respect of any shareholding in NS Group any time starting from June 12, 2008.
Following the exercise of the call option by TMK which decided to exercise it in respect of the whole stake in NS Group held by Evraz, the resulting sale and purchase transaction has been completed at an exercise price of US$508 million.
The company said it would keep proceeds from the sale in reserve against future interest payments on the company’s debt in 2009.
