Flash Report /
Russia

Current progress of Raspadskaya demerger

  • Greenleas is said to have filed a petition to the FAS to approve the direct acquisition of a 26.74% stake in Raspadskaya

  • We are not aware if any other major shareholders have followed suit

  • Raspadskaya shares reached a new high of RUB386/share driven by demerger expectations and rising met coal prices

Boris Krasnozhenov
Boris Krasnozhenov

Head of Research (Managing Director)

Follow
Yulia Tolstykh
Yulia Tolstykh

Analyst, Metals & Mining

Follow
Alfa
31 August 2021
Published byAlfa

Roman Abramovich’s Greenleas International, which owns a 28.64% stake in EVRAZ (EVR: LN; E/W) is said to have filed a petition to the FAS to approve the direct acquisition of a 26.74% stake in Raspadskaya. The amount corresponds with 28.64% of EVRAZ’s 93.4% stake in Raspadskaya. This in line with the previously announced intention of EVRAZ to distribute Raspadskaya shares among its shareholders on a pro rata basis.

We are not aware if any other major shareholders (Alexander Abramov - 19.32%, Alexander Frolov – 9.65%, Gennady Kozovoy 5.74%, Maxim Vorobyev – 3.01%.) have followed suit. Assuming they did, EVRAZ’s remaining stake in Raspadskaya could be c.31.4%, which could be distributed among free-float holders of EVRAZ. According to EVRAZ's management comments, the demerger of Raspadskaya should be completed by the year-end.

The news is NEUTRAL for EVRAZ at this point and bears no direct implication for the company’s valuation. Raspadskaya shares reached a new high of RUB386/share driven by demerger expectations and rising met coal prices.