SVST.L Regulatory News (SVST)

8 Nov 2006 08:28

OAO Severstal08 November 2006 8 November 2006 Stabilisation Notice: OAO Severstal (the "Company") In connection with the Global Offering of 85,000,000 Ordinary Shares in the formof Ordinary Shares (the "Shares") and Global Depositary Receipts ("GDRs" andtogether with the Shares, the "Securities"), with one GDR representing one Shareat a price of US$12.50 per GDR ISIN codes: 144A: US8181501045; Reg S: US8181503025 Citigroup Global Markets Limited ("Citigroup") as stabilisation manager, or itsagents may, in consultation and after agreement with the other Joint GlobalCoordinators, on behalf of the Underwriters, overallot or effect transactions inthe GDRs with a view to supporting the market price of the GDRs at a levelhigher than that which might otherwise prevail in the open market from 9:00a.m.London time on 8 November 2006 to 7 December 2006. However, Citigroup and itsagents have no obligation to do so. Such stabilisation transactions may beeffected on the London Stock Exchange and any other securities market, over thecounter market, stock exchange or otherwise. Such stabilisation transactions, ifcommenced, may be discontinued at any time and must end no later than 7 December2006. There are no associated instruments that are subject to stabilisation. The Company has granted the Underwriters an over-allotment option (the"Over-allotment Option"), solely to cover over-allotments in the Offering,exercisable, on or before 7 December 2006 which, if exercised will require theCompany to issue to the Underwriters additional Shares in the form of GDRs, upto a maximum of 15.0 per cent. of the aggregate number of Securities beingoffered in the Offering (before any exercise of the Over-allotment Option) atthe Offer Price of US$12.50 per GDR to cover such over-allotments (if any) and/or to cover short positions arising from sales of GDRs effected by it during thestabilising period. The securities to be stabilised are GDRs of the Company. Number of Shares in the Offering: 85,000,000 Number of GDRs subject to the Over-allotment Option: 12,750,000 (1 GDR represents 1 Share) The Offer Price per GDR was set at US$12.50 on 7 November 2006 Citigroup contact: Stephen Morris +44 207 986 0740 This announcement may not be distributed, directly or indirectly, in or into theUnited States, Canada, Australia, Japan or Russia. This announcement is for information purposes only and does not constitute aninvitation or offer to underwrite, subscribe for or otherwise acquire or disposeof any securities of the Company in any jurisdiction. In addition, if and to the extent that this announcement is communicated in, orthe offer of the securities to which it relates is made in, any EEA Member Statethat has implemented Directive 2003/71/EC (together with any applicableimplementing measures in any Member State, the "Prospectus Directive") beforethe publication of a prospectus in relation to the securities which has beenapproved by the competent authority in that Member State in accordance with theProspectus Directive (or which has been approved by a competent authority inanother Member State and notified to the competent authority in that MemberState in accordance with the Prospectus Directive), this announcement and theGlobal Offer are only addressed to and directed at persons in that Member Statewho are qualified investors within the meaning of the Prospectus Directive (orwho are other persons to whom the offer may lawfully be addressed) and must notbe acted on or relied on by other persons in that Member State. The Global Offer and the distribution of this announcement and other informationin connection with the Global Offer in certain jurisdictions may be restrictedby law and persons into whose possession any document or other informationreferred to herein comes should inform themselves about and observe any suchrestriction. Any failure to comply with these restrictions may constitute aviolation of the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States.The securities have not been, and will not be, registered under the U.S.Securities Act of 1933 and may not be offered or sold in the United Statesabsent registration or an exemption from registration. There will be no publicoffer of securities in the United States. END This information is provided by RNS The company news service from the London Stock Exchange