SCM Bids on Kryviy Rih Iron Ore
11 July 2008
System Capital Management CEO Roman Vodolazsky said to a local daily that the company is in the final stage of closing a deal to acquire Kryviy Rih Iron Ore from its owners, Privat Group. Eugene Cherviachenko: The announcement reinforces our belief that Privat will exit the iron ore business (see our note of June 22), which in addition to Kryviy Rih Iron Ore includes a 47.9% stake in Pivdenny Iron Ore (PGZK: BUY) and a 94% stake in Sukha Balka (SUBA: BUY). According to media reports, Metinvest, metals arm of SCM, is in merger talks with Smart Group, Privat’s partner in Pivdenny Iron Ore and holder of a 44.4% stake.
