Novolipetsk announce that on July 15th 2009 it acquired a 25% stake in NSMMZ, a Maxi Group production facility from Metallurgical Holding.

NLMK’s ownership has increased to 57% including the shares that NLMK acquired in the loans for shares auction conducted on 25 June 2009.

The release said “Before this acquisition, a 25% stake in NSMMZ was pledged by one of NSMMZ’s creditors and was redeemed by NLMK by direct guarantee. The transaction was closed at a market price based on the results of an open auction for NSMMZ shares held on June 25th 2009.”

The released added that “This acquisition will enable NLMK to more efficiently manage its subsidiaries comprising its long steel segment. Moreover, since the load of financing investment and operational activities of Maxi Group assets lay upon NLMK, the acquisition of the stake in the major production asset of Maxi Group allows NLMK to provide guarantees while investing in Maxi-Group assets.”