NLMK.L Regulatory News (NLMK)

25 Jan 2008 09:11

OJSC Novolipetsk Steel25 January 2008 25 January 2008 Novolipetsk Steel to acquire international steel trading companies OJSC Novolipetsk Steel (LSE: NLMK), the leading Russian steel producer,announces today that its 100% owned subsidiary, NLMK International BV(Netherlands), has signed an agreement to acquire a 100% stake in Novexco(Cyprus) Limited and 100% of Novex Trading (Swiss) S.A., both trading companies,from the United Steel Group (USG). The acquisition price is approximately Euro77 million. The deal is subject to regulatory approval. This transaction is in line with the Company's strategy to establish aninternational trading department within the Group and is designed to bettercontrol the Company's export sales and further enhance its presence in coreexport markets. In 2007, Novex Trading (Swiss) S.A. and Novexco (Cyprus) Limited acquired thetrading business of Steelco Mediterranean Trading Ltd., Tuscany Intertrade (UK),and Moorfield Commodities Company, the international wholesale traders that wereexclusive export traders of NLMK's products for several years. The client baseand all other business operations related to these trading companies weretransferred to the acquirers. Dmitry Baranov, Vice President for Sales, and a member of NLMK's ManagementBoard, commented: "This acquisition will enable us to better control our export sales to coremarkets, consolidate and control trading revenues as well as better service ourcustomers and enhance the transparency of our export operations. We have longlasting relationships with the companies acquired, and we are sure that thesecompanies will perfectly integrate into NLMK's business model". About Novolipetsk Steel (NLMK) Novolipetsk Steel (NLMK) is one of the world's most profitable steel companies,with EBITDA margin over 40%, and one of the three largest flat steel producersin Russia, with over 9 million tonnes of crude steel capacity. NLMK's productionfacilities are among the most technologically advanced in Russia, producing flatsteel products in a variety of grades and sizes.For further information visit www.nlmksteel.com Steelco Mediterranean Trading Ltd. is a trading company specializing in slabssupply to the countries of North America and South-East Asia. Tuscany Intertrade (UK) is a trading company supplying, hot- and cold-rolledsteel primarily(up to 90% of steel products) to EU countries . Moorfield Commodities Company is a trading company supplying electrical steel,hot- and cold-rolled steel primarily to European countries.For further information: NLMK Anton Bazulev +7 495 915 1575 Financial Dynamics Jon Simmons +44 207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange