“Mechel” made a step toward IPO of its ore-mining asset

“Mechel” made a step toward IPO of its ore-mining asset – the company transferred two its main largest assets (coal company “South Kuzbas” and “Korshinovskiy mining and processing complex”) to “Mechel-Mining”, a 100-% subsidiary of “Mechel”. The value of transferred assets amounts to RUB122bn.

Earlier “Mehel” set up “Mechel Mining” and it is expected that “Mechel’s” subsidiary will conduct the initial public offering (IPO) soon. Experts believe that “Mechel” chose the right time to conduct IPO of its subsidiary because prices for iron ore and metallurgical coal reached absolute records.

In 2004 “Mechel” conducted IPO on the New-York stock exchange and raised about US$300m through the IPO.

RBC Daily

2008-05-19 09:06:00

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