ZPST Invites Minorities To Kiss & Make Up?

In an interview yesterday, Zaporizhstal’s CFO Alexander Rabtsun said the steel mill was ready to enter into discussions with its minority shareholders to reach a compromise about the company’s planned dilutive additional share issue. Added Rabtsun, “we are open to meeting to make things better for minorities and us.” Andriy Gostik: ZPST’s declarations about their readiness to seek compromise with the minority shareholders look positive only at first glance. Given the Kyiv Court of Appeals ruled in favor of ZPST thereby making the dilutive share issue by ZPST legal, we do not expect ZPST to be ready to reimburse minority shareholders for their losses. ZPST is apparently interested in negotiations to make sure that minorities will stop legal battles but it is doubtful the company would buy back its shares from minority shareholders at the market prices that prevailed before the announcement of its share issue plans. We will be watching the developments of the situation closely.