September 08, 2008

Severstal\' to acquire balance shares in mining subsidiaries

Interfax reported that Severstal' OAO's LLC Holding Mining Company has offered minority shareholders in coal producer OJSC Vorkutaugol RUB 4,455 per share. The voluntary offer applies to ordinary shares and Type A preferred shares. Holding Mining Company currently owns 98.33% of ordinary shares and 76.20% of preferred shares in Vorkutaugol. The offer is effective for 70 days from the date of receipt.

UniCredit Bank is the guarantor for the offer. In addition, LLC Holding Mining Company sent an offer to minority shareholders in Karelsky Okatysh and Olenegorsky GOK on the buyout of their stock at a price of RUB 26,965 and RUB 18,290 per share, respectively. At present, LLC Holding Mining Company owns 94.78% and 92.7% of these companies, respectively. Based on this price and the number of shares to be bought out, the company could spend a total of USD 1.36 million on these offers.