Transaction values 100% of the equity capital of YUKU at RUB 67,741 million. The Transaction is expected to be completed by the end of December 2020, subject to corporate approvals from Raspadskaya shareholders.
The consolidation establishes the enlarged Raspadskaya as a leading Russian producer of high quality metallurgical coal with low cost asset footprint, reduces risks due to the diversification of coal type mix, expanded client base and assortment of final products. It will streamline the corporate structure and management of the Company’s coal business, increase transparency of results and prospective plans of the combined business and provide investors with an opportunity to obtain a direct exposure to EVRAZ’s world-class metallurgical coal asset portfolio via a publicly-listed security.
The operating portfolio of enlarged Raspadskaya will comprise 7 mines, 2 open pits and 3 processing facilities in Kemerovo Region and 1 mine in the Tyva Republic. Combined reserve base will account 1.9 billion tons of coal.
Citigroup Global Markets Limited and JP Morgan Securities plc, which conducts its UK investment banking activities as JP Morgan Cazenove acted as financial advisors and Linklaters LLP as legal advisor to EVRAZ.