Three Metinvest assets announce squeeze-out prices

Three Ukrainian assets of Metinvest (METINV),
Ukraine’s largest steelmaker, announced on March 19-20 the share prices at
which they will conduct the squeeze outs they announced two weeks ago, according
to regulatory reports.

Barlenco, a Cyprus-based member of Metinvest, will buy
out 3.3% of Azovstal (AZST UK) at UAH 0.564 (USD 0.021) per share, 0.7% of
Ilyich Steel (MMKI UK) at UAH 0.08 (USD 0.003) per share, and 4.8% of
Zaporizhia Coke (ZACO UK) at UAH 4.94 (USD 0.19) per share.

Dmytro Khoroshun: We
calculate that Metinvest will spend USD 4.3 mln on the buyout of these three
assets, substantially 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.