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Philip how can you discuss them for years since I saw the details in the Evraz NTMK in RU bonds placement offer? I get that you don't understand debt/accounting schemes. So very simple - there are 2 companies: Philip Plc UK and Philip Russia. Philip Russia buys/has 3-4 bln usd of Philip Plc UK debt. Philip Russia than writes it down as uncollectable (HAS ALREADY HAPPENED) and sells it for 100 mln to Mr. Formally Unrelated. Then Mr. Formally Unrelated comes to Philip Plc UK and makes it pay 3-4 bln usd of Philip Plc UK debt. Philip Plc UK has no money and pays for the debt with Russian assets and NA assets may be. I want you to formulate your questions at AGM not as a spoiled child about dividends, but as a serious investor - main idea being that you DO NOT want the company to sell the debt to Mr. Formally Unrelated/assets to Mr. Formally Unrelated/etc. Here our interests go along cause I want the company to be whole to ESO which can happen any time now (I hope the gov will stop sleeping and release the list part 2), and you just want it to be whole to make money).
Philip, they can sell the debt very cheap from Evraz Russia to an "unrelated" entity and this "unrelated" entity will approach Evraz plc with 3 usd bln of Evraz plc debt to settle the debt with the sale of the Russian assets. And I see signs that this might be their plan. I was fully invested into ESO thing, but the RusGov has made Eso into stages and if this asset for debt sale happens than all these shares will be worthless for me too as well as for you. Philip, i get that you have invested all your money and life into Evraz and feel better listening to the optimists in your cult chat but at least try to think rationally and stop being a clown asking idiotic questions instead of the real ones. See what has happened in Polymetal and Yandex cases. Anthony MC/Plena/Teegak/Avingon etc - I am NOT buying you at ANY price, on ANY terms, you should consult a physiatrist ASAP. Write your messages to Philip, not me, maybe he will buy you out. I will not buy your shares even if you follow me on your knees for a month begging to buy them. I have no idea how to put it in a more convincing way!
Philip educate yourself a little bit at least, there is no such thing right now as intercompany in Evraz case due to sanctions and the capital controls in Russia and in UK. At least read what I have written.
I have read Philip’s/PRO questions for the Annual Meeting of Evraz plc shareholders and must say that they are away from what Evraz plc minor shareholders should worry about. The key mistake is that Philip/PRO thinks that nothing has happened to the West-Russia relations and to Evraz plc since 2021. Like that there are no sanctions, no war, etc. and therefore no problems with Evraz plc legal entity and structure and assets safety. There are like 10 questions about “Dad, have we arrived to the dividends yet?” that show that you understand absolutely nothing about the situation and make yourself look like spoiled little kids. Evraz also won’t answer you about the 470 law ESO, because the Eso lists are made by the Rus Gov and are mandatory. Evraz has z-e-r-o influence/choice over it.
Apart from sanctions and the only good question (which is: Is there anything more we as shareholders can do to support Evraz moving forward?), the real problem is Evraz plc debt.
Evraz plc was the key debtor in the Evraz whole corporation – about 4 bln US dollars of debt on Evraz plc as of 31/12/2021 also inherited from Evraz SA. This debt was absolutely manageable when it was balanced by the Russian assets – Raspadskaya Coal and the Russian metal business (АО «ЕВРАЗ Нижнетагильский металлургический комбинат» legal entity).
But now the lifeline between the Russian business and the Evraz plc in UK is cut off. And if you could look at the Evraz plc balance there is a great hole – they still have about 3 bln of debt including eurobonds and they must write off “toxic” Russian assets as hundreds other UK and Western corporation have done in 2022/2023. It is impossible to balance that big of a write off if you understand how the balance sheet and audit works. Technically they have negative net assets of around 2 bln usd. This also makes the dividend or buy back question so ridiculously stupid.
Moreover, most of the Evraz plc debt now is in the hands of the Russian part of Evraz (АО «ЕВРАЗ Нижнетагильский металлургический комбинат» legal entity) that makes “sale” of Russian assets from Evraz plc for zero (debt) an option for them unless there would be a determined group of shareholders ready to go to court, etc.
If you really want to do something of value for your shares you should prepare to oppose the Russian assets sale by Evraz plc if it happens. This is the biggest risk for the Evraz plc holders. Even in the ESO 470 law scenario you can get some money blocked in Russia forever, but with the asset sale you get exactly zero, because the debt and write off are structured that way that Evraz plc loses all!!!
So, to sum it all up – the key idea you should show is that you want the company, i.e. the Evraz plc to stay intact and do not sell anything unless it is absolutely mandatory like ESO under 470 law. No fire sales running away Polymeta
There are 3500 shareholders and 10 madman. These 10 people fill all the internet with cult-like nonsense about how Evraz Plc is doing great and ESO not happening, sanctions lifted tomorrow, NA assets worth a lot, Evraz default is not a default etc. etc. And when asked what price they are willing to pay for the shares they run away screaming because they know Evraz Plc is a zero and don't want to put ANY money in. I believe in ESO-ing soon and put my OWN money in. That is the key difference between us.
ESO has happened in march! for the first 6 companies! Evraz plc did not make the first edition of the ESO list but I think still that Evraz is going to get ESO-ed and stripped from the Russian assets pretty soon. Even the cult now agrees that ESO will happen.
I will be in UK from 5th of May to 9th of May, after that I have to change passport/visa, so next deals earliest JULY 2024 if no Evraz ESO before that. So write me an email to: chinaadr2021 at yandex.ru to discuss the deals if you want to get the money for your stocks since ESO will nullify them for foreigners.
AGM will be a 100% waste of time. I agree with the guy who wrote that Evraz Plc is not releasing results because they would have to write off Russian assets since they don't control them any more and that would make an enormous hole in the balance of Evraz Plc and Evraz Plc would have to report negative net assets as a result. BP, Shell, Coca-Cola and more than 200 companies have written off Russian assets worth more than 80 bln pounds and I see absolutely no reason why Evraz Plc would be an exception in the write off rule.
To All sellers - I have replied to all the emails - please check and also check spam folder - some mail servers put all RU mail in spam for some reason. Thank you!
There are levels of entities. Rasp has money, Evraz metal Russia has usd 1,7 bln debt, Evraz PLC is in default on bonds and has very large debt, more than 2,5 bln usd. If the link between the Russian assets and the Evraz plc is broken via ESO law, Evraz plc is a zero 100%. If Evraz PLC somehow manages to reestablish control over the Russian assets or gets a huge compensation for them in real money transferred out of Russia then yes, all is fine for the plc. I still think that selling is a great idea for foreigners who would not be in the ESO Russian boat.
Evraz Russian assests results 2022-2023:
Last year's revenue decreased by 19% to $7.7 billion. The decrease in the indicator was due to a drop in sales of semi-finished steel products, as well as a decrease in prices for tal.
According to the presentation, sales of semi-finished steel products in 2023 fell by almost 18%, to 4.37 million tons from 5.4 million tons a year earlier. At the same time, sales of construction products increased by 6%, to 4,078 million tons, and railway products - by 5%, to 1,352 million tons.
The EBITDA margin was 27.6% last year.
Capex in 2023 fell by 5% to $634 million.
Net debt increased by 7% to $1,749 million. The increase in the debt burden was due to the repurchase in 2023 of Eurobonds of the parent company for $425.2 million.
You wrote: "I'm not selling, especially not to you."
move along, what is your problem? there are thousands of shareholders, make them a better offer. There must be some cultural difference - in Russia you don't walk into a store and throw a tantrum like you do "i won't buy at your shop and don't even consider buying", you just move along that is it.
Hi! If you want to get money for your Evraz plc shares write me an email to: chinaadr2021 at yandex.ru
I buy Evraz shares - best prices, best terms, 15+ deals closed
I will be in UK in early May for several days, so if you want to sell write an email. Minimum amount 5000 shares. Thank you.
Part 2 If successful, the claim will result in the suspension of the Company's shareholder rights in relation to the Subsidiary and the subsequent distribution of shares of the Subsidiary between the holders of the DRs and the ultimate owners of the Company. The subsidiary will be transformed into an open joint-stock company with shares listed on the Moscow Exchange.
If the Court grants the claim, it will entail certain risks for the Company's shareholders and beneficiaries, as previously disclosed in the Company's 2023 Annual Report. Some X5 DR holders may not be able to participate in the procedures proposed by the Law or may encounter significant difficulties in doing so. Non-Russian shareholders who participate in the distribution of shares of the Subsidiary will also be subject to temporary Russian restrictions relating to dealing in securities and receiving dividends, placing securities and any future dividends in so-called S accounts. The law provides for possible cash compensation at market value for unallocated shares of the Subsidiary, however, payment of such compensation will require obtaining approvals in accordance with temporary Russian regulatory rules regarding cross-border financial transactions. As a result, DR holders who do not participate in the distribution may be unable to recover their investment and the value, profitability and liquidity of their DRs may be adversely affected.
• X5 CEO Igor Shekhterman and X5 President Ekaterina Lobacheva will retire from the Company's Management Board and will continue to perform their responsibilities in managing the Subsidiary, focusing on developing and maintaining the stability of Russian retail operations.
As a result of these changes, the Management Board and the Supervisory Board of the Company will consist of two and three members, respectively. The Board of Directors of the Subsidiary will consist of six members, including three new members appointed on March 27.
In order to further develop the corporate governance system of X5, the Management Board of the Subsidiary in Russia, which previously consisted of nine members, is being dissolved.
Reference Information:
X5 Retail Group NV (ticker on the London Stock Exchange and Moscow Exchange - FIVE; Expert RA rating - ruAAA, ACRA - AAA (RU)) is a leading Russian food retail company that manages stores of several retail chains: convenience stores Pyaterochka ", supermarkets "Perekrestok", "hard" discounters "Chizhik", as well as the chains "Krasny Yar" and "Slata". The company takes a leading position in e-commerce, developing digital businesses Vprok.ru, 5Post, express delivery and “Much Salmon”.
As of December 31, 2023, the Company operated 24,472 stores with leading positions in Moscow and St. Petersburg
X5 Retail Group today's message - This is what will happen to Evraz PLC later this year
X5 RETAIL GROUP NV ANNOUNCES THAT IT HAS RECEIVED NOTICE OF THE APPLICATION OF THE MINISTRY OF INDUSTRY AND TRADE OF THE RF ON THE SUSPENSION OF CORPORATE RIGHTS TO ITS RUSSIAN SUBSIDIARY
Amsterdam, March 29, 2024 – X5 Retail Group NV (“X5” or the “Company”, ticker FIVE on the London Stock Exchange (LSE), which operates the Pyaterochka, Perekrestok and Chizhik retail chains ", reports that the Ministry of Industry and Trade of the Russian Federation has notified the Company of an application to the Arbitration Court of the Moscow Region (the "Court") to suspend the Company's corporate rights in relation to its Russian subsidiary LLC "Corporate Center X 5" ("Subsidiary").
In accordance with the provisions of Federal Law of the Russian Federation No. 470-FZ of August 4, 2024 (the “Law”), the Court must make a decision on accepting the application within one business day from the date of its filing. If the Court accepts the application, the trial itself will take at least five days and no more than one month from the date of acceptance of the application.
During the period of litigation, the Court may, in its discretion, grant interim measures that may limit certain of the Company's rights in relation to the Subsidiary. These measures may include prohibiting you from voting at a general meeting of shareholders, alienating your shares in the Subsidiary, or receiving distributions from the Subsidiary's net profits.
The application requests the Court to limit the rights of the Company's shareholders in relation to the Subsidiary; convert shares owned by the Company into treasury bills; and further follow the procedure provided for by the Law, requiring Russian holders of the Company's depositary receipts (DRs) and its ultimate owners to accept the distribution of shares in the Subsidiary in proportion to their participation in the Company, as well as providing a similar right to non-Russian owners and beneficiaries of the Company. The application further states that the above rights and obligations will be accorded to the owners and beneficiaries of the depositary receipts as of the date of the Court's decision. The foregoing means that the purchase or sale of X5 DR after the above date of the Court's decision will not result in the purchaser receiving rights to participate in the distribution of shares of the Subsidiary. The Law also provides for a separate distribution procedure for holders of X5 DRs in Russian depositories through a process to be established by the Central Bank of Russia and which will not require holders of X5 DRs to apply for participation. However, the corresponding act of the Central Bank of Russia has not yet been issued
You can not imagine how many times were Biden/Bloomberg warnings called "scare mongering" before the war broke out in all Russian media and social networks in late 2021/2022. Russian media, Russian Foreign ministry etc went all out to claim that war is absolutely impossible and that Biden/Bloomberg are making this whole things up cause they are stupid/senile/out of touch/idiots. And then it all happened!!! If you had listened to Biden/Bloomberg you could have made a fortune. So, covering your head into sand is a very bad idea for your wallet. Evraz will be ESOed or even worse - sell the assets like Polymetal did. But as someone told me - they would rather burn the money than sell. That is stupid, but people buy into crypto scams all the time so who am i to judge you.