SCM Limited Cyprus Becomes Shareholder in Druzhkivka Machinery

According to a release from the Druzhkivka Machinery (DRMZ), as of its AGM on June 8, SCM Limited (Cyprus) now holds a 45% stake in the company. Avdiyivka Coke (AVDK: BUY), which held a 50.02% stake was removed from the company’s shareholders. At the AGM, shareholders approved 2006 financials: net revenues of USD 85.5 mln (down 6.3% yoy) and net income USD 2.3 mln (from USD 0.33 mln in 2005); and voted to direct 5% of net income to a dividend payout (USD 116.15 ths or USD 0.00056 dividends per share, 0.21% yield). Eugene Cherviachenko: As we expected, Avdiyivka Coke is in the process of shedding non-core assets. We accounted for this in our valuation of the company. Druzhkivka Machinery should benefit from this move as its ownership structure has cleared up a bit by moving out from under the wings of Metinvest Holding (managing company of Avdiyivka Coke). SCM might have intentions to create a holding for its machinery assets (with its other coal machinery, rail and heavy machinery assets).