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July 8, 2013

Mechel announces closure of deal on disposal of Toplofikatsia Rousse EAD

Moscow, Russia ó July 8, 2013 Ė Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the closure of the deal on disposal of 100% of the shares of Toplofikatsia Rousse EAD (TPP Rousse, Bulgaria).

According to the sale&purchase agreement, signed in December 2012, 100% of Toplofikatsia Rousse EADís shares were sold to Toplofikatsia Pleven, a privately-held Bulgarian power company. The disposal is valued at approximately 29 million euro based on the assetís equity value. The agreement also stipulates that Toplofikatsia Rousse EADís debt to Mechel Carbon for historical coal deliveries in amount of 18.8 million US dollars will be repaid.

VTB Capital and UniCredit Bank acted as financial advisors and CMS as legal advisor to Mechel OAO in this transaction.

In 2012 TPP Rousse generated 364 GWh of electricity and 235 Gcal of heat power, which resulted in 56.8 million lev in revenues and -3.1 million lev in EBITDA. As of 31 December 2012 TPP Rousse had some 300 employees.

Commenting on the event, Stanislav Ploschenko, Mechel OAOís Chief Financial Officer, noted: ďThe disposal of TPP Rousse is the second deal for disposal of the Groupís non-core assets that has been completed this year. Apart from financial gain from this assetís disposal, this deal will enable our management to focus on its business priorities ó consolidating the groupís leading position as a metallurgical coal producer, strengthening its positions in steel products for construction and increasing its share on the markets for high value-added steel products. The transaction was made in line with the program for restructuring the groupís assets as earlier approved by Mechel OAOís Board of Directors. The funds from this sale will be used to repay the Groupís debts.Ē


Mechel OAO
Elena Andreyeva
Phone: +7 495 221-88-88




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