SVST.L Regulatory News (SVST)

3 Dec 2007 09:48

OAO Severstal03 December 2007 Press release 3 December, 2007 Severstal is pleased to announce a consolidation of its holding in US steelplant, SeverCorr. Severstal will acquire 100% of Barocom from Severstal's CEO, Alexey Mordashov,which owns 18.5% and controls 79.9% of Severcorr, for $84.4 million. Severstal is investing in Severcorr's assets at investment cost, as opposed tofair value, which would have resulted in a substantially higher acquisitionprice. When the deal closes, Severstal will hold 71.1 % of the shares inSeverCorr. Chris Clark,Chairman of Severstal's Board of the Directors, said: "At thisfavorable price, we believe that the consolidation of our stake in SeverCorr isin the best interests of Severstal's shareholders and adds considerableshareholder value". About SeverCorr: "SeverCorr" is Severstal's and its American partners' super-modern mini-mill,located in Columbus, Mississippi, (USA), utilizing electric steel meltingtechnology. The plant is capable of producing up to 1.3 million tons ofhigh-quality steel per year. It employs 450 people and is located in closeproximity to railway and major highway networks. The plant is also well-placedto benefit from the automobile plants currently under construction in the southof the USA. The mini mill's products are intended for use in the automotive,construction, agrarian, pipe-making and machine-building sectors. About Severstal: Severstal is an international steel producer with a listing on the RussianTrading System and the London Stock Exchange. Incorporated in 1993, the companyfocuses on high value added and unique niche products and has a successful trackrecord of acquiring and integrating high-quality assets in North America andEurope. Severstal owns mining assets in Russia, thus securing its supplies ofraw materials. In 2006 Severstal produced 17.6 million tonnes of steel and hadrevenues of $12.4bn, PBT of $1.8bn and EPS of $1.27. Severstal, Investor Relations - Russia Dmitry DruzhininSeverstal, Public Relations - RussiaOlga Antonova+7 495 540 77 66 Tulchan Communications - UKDominic Fry/Tom Murray+44 207 353 4200 This information is provided by RNS The company news service from the London Stock Exchange