Moscow, Russia – June 14, 2007, – Mechel OAO (NYSE: MTL) announces the fulfillment of its obligations related to the previously announced acquisition of 49% of the shares of Kuzbass Power Sales Company OAO after obtaining permission for the deal from the Federal Antimonopoly Service of the Russian Federation.
As the result of the auction held on May 22, 2007, Mechel-Energo OOO owned by Mechel OAO has concluded an agreement to acquire 297,020,200 ordinary shares of Kuzbass Power Sales Company comprising 49% of the charter capital of Kuzbass Power Sales Company for RUR 1.14 billion (approximately $44 million).
After obtaining permission for the deal from the Federal Antimonopoly Service of the Russian Federation Mechel-Energo OOO has performed in full its financial obligations before OAO RAO "UES of Russia" regarding payment for the 49% stake in Kuzbass Power Sales Company in the amount of RUR 1.14 billion. The acquisition will close upon completion of the transferring of the ownership of the ordinary shares and making a respective record in the securities’ register, at which time Mechel will become the fully legitimate owner of the controlling stake of 50.2% in Kuzbass Power Sales Company.
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