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Russian steel company Severstal to list in London before year-end

Russian steel company Severstal to list in London before year-end

Russian steelmaker OAO Severstal, which had tried to merge with Arcelor SA, said Friday that it plans to list its shares on the London Stock Exchange by the end of the year.
Severstal, one of Russia's largest steel makers with iron ore and coking coal mining divisions, gave no details of the size or the value of the float.
Dow Jones Newswires cited unidentified sources close to the deal as saying the company was expected to list 10 percent to 15 percent of its equity and could have a market capitalization when listed of US$10 billion to US$20 billion (euro8 billion to euro16 billion).
Severstal Chairman Alexey Mordashov would sell a part of his 90 percent stake in the company in the listing, the statement said. Mordashov said that he planned to become the company's chief executive and appoint a new independent chairman in an effort to counter criticism of the company's corporate governance record.
"Severstal will pick someone who has a good profile with investors," he was quoted as saying by the agency.
Earlier this year the company attempted to merge with Arcelor SA before losing out to rival Mittal Steel Co. NV. Arcelor shareholders voted down the merger on June 30, clearing away a major hurdle to Mittal's bid to form a steel titan with nearly 10 percent of global production.
The Russian company said at the time it was "looking at new opportunities for development in line with the previously announced aim of world leadership in steelmaking."
Severstal has been rumored this week as a possible counter-bidder for Anglo-Dutch steel company Corus Group PLC after India's Tata Steel Ltd. said it was interested in acquiring it. Mordashov did not comment on a possible bid but said he intended to make Severstal at least the world's No. 2 steelmaker. "There are a lot of potential partners for our company," he said.
Severstal signed a deal this week with mining giant Anglo-American to jointly tap Russia's mineral riches, forming an alliance that will explore deposits of nickel, copper and zinc.
Last month, Severstal reported a 54 percent drop in net profit for the first half of 2006, blaming lower steel prices and higher operating costs. The company earned US$405 million (euro324 million) in the six months ended June 30 as revenue dropped 3.9 percent to US$3.99 billion (euro3.12 billion).


Updated : 2021-08-03 14:49 GMT+08:00