Mechel Reports Selling Stake in Vanino Sea Trade Port OAO
MOSCOW, Oct. 29, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, reports the sale of a 28-percent
share in Vanino Sea Trade Port OAO's equity capital.
Mechel Group, as represented by Mecheltrans OOO, sold some 28% of the port's
equity capital to an outside investor, retaining a minor share package for
itself. The transaction amounted to 5.04 billion rubles (approximately 158.43
million US dollars*).
Earlier the company closed the deal on acquiring this package from the company
En+, which deal was announced on January 31, 2013. The deal with En+ was fully
funded by the aforementioned investor and thus had no bearing on Mechel
The consortium of investors is not interested in transhipping their products
through Port Vanino, which will enable Mechel to use the port's entire
capacity in the company's interests.
Access to Port Vanino's transhipment capacities significantly enhances
Mechel's export potential in Asia and the Pacific and ensures guaranteed sales
volumes for the Group's coal products, taking into account the Elga deposit
*Based upon the Russian Central Bank exchange rate of 31,8119 RUB/USD as of
October 29, 2013.
Mechel is an international mining and steel company which employs over 80,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in
a single production chain, from raw materials to high value-added products.
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you
to the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
"Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in
our Form 20-F, that could cause the actual results to differ materially from
those contained in our projections or forward-looking statements, including,
among others, the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals and licenses,
the impact of developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of our shares or
ADRs, financial risk management and the impact of general business and global
CONTACT: Mechel OAO
Tel: +7 495 221-88-88
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