NLMK.L Regulatory News (NLMK)

30 Dec 2005 13:03

OJSC Novolipetsk Steel30 December 2005 OJSC Novolipetsk Steel (NLMK) Agrees to Sell 12% Interest in Lebedinsky GOK and to Acquire Additional Stake in KMA Ruda OJSC Novolipetsk Steel, NLMK (LSE: NLMK) today announced that it has agreed tosell its entire stake of 12% (2,336,867 ordinary shares) in Lebedinsky GOK toCJSC "OEMK-Invest" for USD 400 million in cash. Lebedinsky GOK is an iron oremining and processing enterprise in Russia. NLMK has also agreed to acquire from the companies affiliated to theshareholders of Lebedinsky GOK an additional 25% stake in KMA Ruda, bringing itstotal ownership to a controlling stake of 58%. KMA Ruda is a mining companylocated within 350 kilometers from NLMK's production facilities in Lipetsk. Theenterprise already supplies NLMK with iron ore concentrate, maintaining anannual production capacity of 1.81 million tonnes. This acquisition enables NLMKto consolidate KMA Ruda on its balance sheet and to fully control itsoperations. The two transactions are implemented within the framework of NLMK's strategy ofactive management of its asset portfolio, in which NLMK seeks to increasecontrol over its core mining and steel assets and to divest its non-core andportfolio investments. Mr. Anton Bazulev, NLMK's Head of Investor Relations commented: "The activemanagement of our asset portfolio is an integral part of NLMK's growth strategy.The well-timed adjustments of our asset positions is vitally important tostrengthening our market leadership." For further information:NLMKAnton Bazulev +7 495 915 1575 Financial Dynamics Jon Simmons +44 207 831 3113Andrew Lorenz +44 207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange