Evraz Plc EVR EVRAZ will sell EvrazTrans to NefteTransService

  Evraz Plc (EVR) - EVRAZ will sell EvrazTrans to NefteTransService

RNS Number : 8326R
Evraz Plc
22 November 2012



     EVRAZ announces an agreement to sell EvrazTrans to NefteTransService


22 November 2012 - EVRAZ plc (LSE: EVR) ("EVRAZ") announces that it has  today 
signed an agreement for disposal  of its Russian railcar operating  subsidiary 
EvrazTrans to  Russian freight  rail  operator NefteTransService  ("NTS")  for 
RUB9,450million (approximately  US$300million)  cash consideration  on  the 
basis of RUB150 million (approximately US$4.8million) of working capital, no
cash and  no debt.  Completion  is subject  to  receipt of  certain  customary 
corporate approvals and delivery by NTS of relevant authority approvals and is
expected to take place by the end of 2012.

EVRAZ will apply the sales proceeds for general corporate purposes, including,
but not limited to, the repayment of some of its debt.

Under the  contract with  NTS,  EVRAZ has  agreed  to sell  its  participatory 
interest in the share capital of  EvrazTrans, the owner of 4,114 gondola  cars 
with an average age of 5.5 years. EVRAZ will retain ownership of and  continue 
to operate hoppers previously owned by EvrazTrans.

As at 31 October 2012, EvrazTrans had  gross assets, which are the subject  of 
the transaction, of  US$243million (under  Russian GAAP).  For the  financial 
year ended 31  December 2011,  EvrazTrans gondola business  produced a  profit 
before tax of US$49.8million, according  to EVRAZ management estimates.  This 
figure reflects  results of  operation  of EvrazTrans  gondola business  as  a 
captive rail freight operator to EVRAZ and is not representative of EvrazTrans
gondola business operations on a stand-alone basis.

EVRAZ has  also signed  a  five-year off-take  service  contract with  NTS  in 
respect of approximately 30% of EVRAZ's rail transportation requirements.  The 
services provided  by  NTS  to  EVRAZ will  be  at  market  prices  negotiated 

Alexander Frolov, EVRAZ's CEO, said,

"The sale of EvrazTrans is in line with EVRAZ's strategy of divesting non-core
assets. The recent  transactions in  the rail cargo  transportation sector  in 
Russia are  evidence that  this market  is now  undergoing consolidation.  The 
divestment of EvrazTrans will  unlock the value of  the asset for EVRAZ  while 
the long-term off-take service agreement will guarantee continuity of services
for transporting EVRAZ's products."


For further information:

Media Relations:
Oleg Kuzmin
VP, Corporate Communications
London: +442078328998 Moscow: +74959376871

Investor Relations:
London: +442078328990 Moscow: +74952321370


EVRAZ is  a vertically  integrated steel,  mining and  vanadium business  with 
operations in the  Russian Federation, Ukraine,  USA, Canada, Czech  Republic, 
Italy and South Africa. EVRAZ is among the top 20 steel producers in the world
based on crude steel production of 16.8 million tonnes in 2011. In 2011  EVRAZ 
sold 15.5  million tonnes  of steel  products. A  significant portion  of  the 
company's internal consumption of iron ore  and coking coal is covered by  its 
mining operations. The company's consolidated  revenues for the year ended  31 
December 2011  were  US$16,400 million  and  consolidated EBITDA  amounted  to 
US$2,898 million. The  H12012 consolidated revenue  was US$7,619million  and 
the H12012 EBITDA was US$1,175million.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


DISBUBDBUSDBGDD -0- Nov/22/2012 15:47 GMT
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