18 Feb 2008 13:46
OJSC Novolipetsk Steel18 February 2008 18 February 2008 NLMK Re Joint Venture Novolipetsk Steel (LSE: NLMK), the leading Russian steel producer, announcedtoday that it has agreed to modify the terms of its agreement with Duferco Group("Duferco") established in December 2006 in connection with the acquisition of a50% interest in Steel Invest & Finance S.A. (Luxembourg) ("SIF"), a holdingcompany for the Joint Venture between NLMK and Duferco ("Original Transaction"). The principal terms of the new agreement are as follows: • NLMK has a perpetual option to acquire one share of SIF at the per shareprice of the Original Transaction and thus raise its participation in SIF to acontrolling stake; • Effective from 18 December 2010, NLMK will have a perpetual option to buy,and Duferco will have a perpetual option to sell, all of Duferco's interest inSIF at a price based on the change in the consolidated shareholders equity ofSIF between October 2006 and the exercise date. The option agreement is in line with NLMK's strategy to better control strategicassets in its portfolio. While NLMK has no current intention to increase itsstake in the JV from the present 50%, the company will be reviewing itsalternatives with regard to the exercise of the options as the Joint Venturematures and its synergies with the Russian production assets materialize. This information is provided by RNS The company news service from the London Stock Exchange