Alumasc Group Regulatory News (ALU)

8 Jun 2007 07:33

JSC Chelyabinsk Zinc Plant08 June 2007 Chelyabinsk Zinc Plant Reaches Agreement With Alumasc Group plc To Acquire Brock Metal Chelyabinsk, Russia - June 08, 2007 - Chelyabinsk Zinc Plant (LSE: CHZN, RTS:CHZN), the leading Russian producer of SHG zinc and zinc alloys, and the AlumascGroup plc (LSE: ALU) reached agreement for CZP to acquire the Brock Metalbusiness (Norton Canes, Cannock, Staffordshire), the leading UK supplier of zincand aluminum die-casting alloys. The transaction is worth £0.35 million plus an amount of £7.8 million whichequals to the estimated working capital at the closing date. All of Brock'sexisting management team and employees will transfer with the business. Theacquisition is expected to be completed by the end of June. Brock Metal is part of the Alumasc Group plc - the premium building andengineering products group. In the year to 30 June 2006, Brock's operatingprofit was £0.7m on revenue of almost £40m. Commenting on the transaction, Sergei Moiseyev, Chairman of the Board ofDirectors of CZP said: We consider the acquisition of Brock Metal, a supplier ofpremium zinc alloys with strong UK and European presence, as an opportunity forfurther downstream integration - towards a more finished product and sales ofmore value-added zinc alloys in Europe, which will have positive impact on ourprofitability ratios. We are excited to welcome Brock's highly experienced teaminto the Chelyabinsk Zinc Plant family, and I would like to assure all employeesof the commitment of CZP to socially responsible policies and confirm that alljobs remain secure". About Chelyabinsk Zinc Plant The Chelyabinsk Zinc Plant is a leading Russian zinc producer, accounting forapproximately 60% of Russian zinc production volume. In 2006 the plant produced148,384 tons of SHG zinc. According to consolidated IAS accounts, revenues in2005 were RUB 4.791 billion, and net profit was RUB 147.2 million. 52.34% of the shares of CZP are owned by NF Holdings B.V. (Netherlands). 50% ofthe shares of NF Holdings B.V. are owned by Arkley Capital S.a r.l., Luxemburg. The ordinary shares of CZP are traded on the RTS exchanges, under ticker CHZN,and the Global Depository Receipts (GDRs) are traded on the London StockExchange under ticker CHZN. Investor and Media Contacts: Anna Levitanskaya, PR Director, Anna.Levitanskaya@zinc.ru Tatyana Krasnousova, IR, Tatyana.Krasnousova@zinc.ru Tel: +7 495 933 27 80 This announcement may include forward-looking statements. CZP's actual resultsmay differ materially from those made in or suggested by the forward-lookingstatements contained in this announcement. By their nature, forwarding-lookingstatements involve risks and uncertainties because they relate to events anddepend on circumstances that may or may not occur in the future. Forward-lookingstatements are not guarantees of future performance. Even if the actual resultsare consistent with the forward-looking statements contained in thisannouncement, those results may not be indicative of results or developments infuture periods. CZP does not undertake any obligation to update anyforward-looking statements to reflect events that occur or circumstances thatarise after the date of this announcement. This information is provided by RNS The company news service from the London Stock Exchange