Evraz sells Ukrainian steel asset to Yaroslavskiy’s DCH
2 March 2018
Evraz (EVR LN) has sold Evraz DMZ, its only Ukrainian
steel asset, to a company of the DCH Group owned by Oleksandr Yaroslavskiy, a
Ukrainian businessman, the Interfax-Ukraine news agency reported, citing a
Evraz press release.
The consideration is approximately USD 106 mln, with
the initial USD 25 mln payable within five business days from today and the
rest payable not later than Dec. 15, Evraz disclosed.
In 2017, Evraz DMZ produced 918 kt of crude steel and
generated USD 586 mln in revenue and EBITDA of USD 16 mln, Evraz said.
Dmytro Khoroshun: Evraz
selling its Ukrainian assets makes sense because it reduces the company’s
political risks. Notably, Yaroslavskiy is forming a small metals and mining
holding. Recall, in May 2017 his DCH Group acquired (also from Evraz) Sukha
Balka, a Ukrainian sintering ore producer, for USD 110 mln. These recent deals
will result in more stable production at Sukha Balka and DMZ.
Evraz’s parent, Lanebrook Limited, continues to be
related to parties that control approximately 46% of Southern Iron Ore, a Ukrainian
producer of iron ore concentrate and sinter. DMZ procures the sinter it needs
from Southern Iron Ore.
