Azovstal-Metinvest Consortium Submits Bid For 46.12% In Turkish Steel Mill Erdemir.

On July 14, a consortium created by the Azovstal metallurgical plant and Metinvest company, controlled by System Capital Management, submitted a bid for 49.9% in Erdemir (Eregli Demir Celik Fabrikalari TAS), Turkey’s largest steel mill. The next step is a due diligence procedure at Erdemir by potential investors. The deadline for submission of financial offers is September 26. Under the terms of the tender, the winner will be entitled to additionally buy out 3.17% in Erdemir from the Development Bank of Turkey on the same conditions the winner acquired the controlling share. Twelve more bidders were qualified for the tender; five of them are Turkish. Erdemir’s consolidated revenues grew 40% to USD 3.2 bln in 2004 and net profit rose 2.2 times to USD 589 mln. Concorde Capital: Previously SCM concentrated on Ukrainian assets, while another Ukrainian steel group, IUD, acquired rolling capacities in Eastern Europe. Now, SCM is catching up. SCM is a well diversified group with assets in several industries including: metal, machine-building, energy, telecom, finance and media. The group?s core assets are in mining and steel.