Azovstal's EGM Votes For Merger With Markokhim Coke.

At the company’s EGM yesterday, Azovstal’s (AZST: SELL) shareholders approved a merger with Markokhim Coke (MCHI: Pending) via a swap of AZST’s additionally issued shares for MCHI shares. AZST’s EGM voted for a 15.2% increase in the company’s charter fund by issuing 483.6 mln in new shares. Each MCHI share will be exchanged for three AZST shares, which corresponds to the ratio of MCHI’s par share price to AZST’s par share price. AZST’s new charter fund registration will be completed in two months and after that the share issue results must be approved by another EGM planned for December 2005. After the merger is completed, MCHI will cease existence as separate legal entity. AZST and MCHI’s controlling shareholder, SCM, expects a significant synergy effect from the merger. In addition, AZST’s shareholders yesterday decided not to pay dividends for 2004.