OAO Severstal, Russian billionaire Alexei Mordashov’s metals producer, bought the shares it didn’t own in Crew Gold Corp. for $4.65 a share.
Severstal unit Nord Gold NV acquired 7 million shares, equating to a 6.62 percent stake, the company said today in a statement. Holders of Crew Gold, a miner focused on Guinea, had approved a “plan of arrangement” for the purchase on Dec. 8.
Severstal, Russia’s largest steelmaker, is studying small and medium-sized acquisitions to become a “global metals and mining company,” Mordashov said in September. The company, also Russia’s second-biggest gold miner, took control of Oslo-traded Crew Gold in July after starting to buy the shares at the beginning of 2010.
“Crew Gold is a very significant part of our growing gold mining business,” Nord Gold Chief Executive Officer Nikolai Zelenski said in the statement. It will “deliver real value to shareholders as well as make a contribution to the development of the local territory and Guinea as a whole.”