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(Alliance News) - Evraz PLC on Wednesday said it has completed the consolidation of its coal businesses, establishing its Raspadskaya unit as one of Russia's largest metallurgical coal producers.
Evraz said it has completed the transfer of all of its shares in AO UCC Yuzhkuzbassugol to Raspadskaya. The deal valued AO UCC Yuzhkuzbassugol at RUB67.74 billion, about GBP668.2 million.
"The consolidation establishes the enlarged Raspadskaya as a leading Russian producer of high quality metallurgical coal with low cost asset footprint, reduces risks due to the diversification of coal type mix, expanded client base and assortment of final products. It will streamline the corporate structure and management of the company's coal business, increase transparency of results and prospective plans of the combined business and provide investors with an opportunity to obtain a direct exposure to Evraz's world-class metallurgical coal asset portfolio via a publicly-listed security," the company said back in November when it first announced the transaction.
"The operating portfolio of enlarged Raspadskaya will comprise seven mines, two open pits and three processing facilities in Kemerovo Region and one mine in the Tyva Republic. Combined reserve base will account 1.9 billion tonnes of coal."
Evraz shares closed 0.6% higher at 474.90 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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