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Evraz Issues New Shares in Favor of Lanebrook

08/14/2009 - Evraz Group SA announces the issue of 7.33 million shares in favor of Lanebrook, the company’s controlling shareholder.

Evraz Group SA announced the issue of 7,333,333 shares in connection with its offering of 7.25% convertible bonds due 2014 and global depositary receipts listed on the London Stock Exchange. Shares were issued in favor of Lanebrook, the company’s controlling shareholder.
 
To facilitate issuance of the Bonds, Morgan Stanley & Co. International plc has offered certain institutional investors the opportunity to borrow ordinary shares represented by global depository receipts in Evraz during the term of the Bonds by means of a stock loan of depository receipts owned by Lanebrook.
 
Evraz issued new shares to Lanebrook against a contribution in kind comprising novation of Lanebrook’s claims under the stock loan to Evraz. The Evraz Board of Directors’ valuation of Lanebrook’s contribution in kind was based on a valuation report by independent appraiser PricewaterhouseCoopers, Luxembourg. In accordance with Luxembourg law, the valuation was subject to a report by independent auditor Ernst & Young of Luxembourg.
 
Following the issue, the company’s number of issued shares now totals 145,957,121, of which up to 7,333,333 may be on loan from time to time in the form of global depositary receipts to Morgan Stanley.