EVRAZ plc has announced plans to consolidate its coal businesses, operated through AO UCC Yuzhkuzbassugol ("YUKU") at PAO Raspadskaya. The contemplated transaction values 100% of the equity capital of YUKU at RUB 67.7 billion. The transaction is expected to be completed by the end of December 2020, subject to corporate approvals from Raspadskaya shareholders, the company informed.
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 tonnes of coal.
Citigroup Global Markets Limited and J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) ("J.P. Morgan Cazenove") acted as financial advisors and Linklaters LLP as legal advisor to EVRAZ.
EVRAZ is a vertically-integrated mining and metallurgical company with assets in Russia, Kazakhstan, the USA, Canada, the Czech Republic and Italy. The company is among the world's biggest steelmakers in terms of steel output. Its own base of iron ore and coking coal almost completely covers in-house demand. In 2019, EVRAZ produced 13.8 million tonnes of steel. Evraz's consolidated revenue for 2019 reached $11.9 billion, consolidated EBITDA amounted to $2.6 billion.
