Moscow, Russia – October 29, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports the sale of a 28-percent share in Vanino Sea Trade Port OAO’s equity capital.
Mechel Group, as represented by Mecheltrans OOO, sold some 28% of the port’s equity capital to an outside investor, retaining a minor share package for itself. The transaction amounted to 5.04 billion rubles (approximately 158.43 million US dollars*).
Earlier the company closed the deal on acquiring this package from the company En+, which deal was announced on January 31, 2013. The deal with En+ was fully funded by the aforementioned investor and thus had no bearing on Mechel Group’s leverage.
The consortium of investors is not interested in transhipping their products through Port Vanino, which will enable Mechel to use the port’s entire capacity in the company’s interests.
Access to Port Vanino’s transhipment capacities significantly enhances Mechel’s export potential in Asia and the Pacific and ensures guaranteed sales volumes for the Group’s coal products, taking into account the Elga deposit development.
*Based upon the Russian Central Bank exchange rate of 31,8119 RUB/USD as of October 29, 2013.
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