EVRAZ closed the sale of its wholly owned subsidiary, EVRAZ Vitkovice Steel (EVS), to a group of private investors – Martinley Holdings, Nabara Holdings, Vitect Services, Hayston Investments and Dawnaly Investments – with each buying 20% of EVS for a gross consideration of USD 89M adjustable for the actual level of EVS working capital. In addition, the buyers have assumed USD 198M of EVS debt liabilities, including the repayment of USD 128M of EVRAZ’s inter-company debt.
EVS, which has been a part of EVRAZ since November 2005, is a manufacturer of steel hot-rolled products located in Ostrava in the Czech Republic. In 2013, EVS produced 571,000t of steel products. EVS generated USD 442M as revenue from continuing operations in 2013. As of 31 December 2013, EVRAZ Vitkovice Steel had gross assets of USD 278M and produced a gross profit of USD 31M, USD 2M of EBITDA and a loss before tax from continuing operations of USD 32M.
Alexander Frolov, EVRAZ’s CEO, said, “We continue to focus on streamlining our business, concentrating management’s efforts on the key assets and deleveraging. The disposal of Vitkovice Steel is part of that strategic initiative.”
