Metinvest iron ore plants announce squeeze-out prices

Three Ukrainian iron ore-producing assets of Metinvest
(METINV), Ukraine’s largest steelmaker, announced on March 15-16 the share
prices at which they will conduct the squeeze outs they announced two weeks ago, according
to regulatory reports by these assets.

Barlenco, a Cyprus-based member of Metinvest, will buy
out 3.6% of Northern Iron Ore (SGOK UK) at UAH 4.45 (USD 0.17) per share, 0.2%
of Inhulets Iron Ore (IGOK UK) at UAH 2.56 (USD 0.10) per share, and 0.2% of
Central Iron ore (CGOK UK) at UAH 3.89 (USD 0.15) per share.

It was also revealed that among the minority
shareholders of these assets is SCM Holdings Limited, a member of SCM group
that controls Metinvest, which owns 3.17% of Northern Iron Ore.

Dmytro Khoroshun: We calculate that Metinvest will spend USD 15.1 mln on the buyout at these
three assets, about five times less than we estimated using Metinvest’s overall
profitability. The squeeze outs will be positive for Metinvest because they
constitute a step forward in corporate governance by eliminating the
bureaucratic burden and legal risks attached to the current quasi-public status
of these assets.