Mechel OJSC, one of the leading Russian mining and metals companies, reports the sale of a 28-percent share in Vanino Commercial Sea Port’s equity capital.
Mechel Group, as represented by Mecheltrans LLC, sold some 28% of the port’s equity capital to an outside investor, retaining a minor share package for itself. The transaction amounted to 5.04 billion rubles (approximately 158.43 million US dollars).
Earlier the company closed the deal on acquiring this package from the company En+, which deal was announced on January 31, 2013. The deal with En+ was fully funded by the aforementioned investor and thus had no bearing on Mechel Group’s leverage.
The consortium of investors is not interested in transhipping their products through Port Vanino, which will enable Mechel to use the port’s entire capacity in the company’s interests.
Access to Port Vanino’s transhipment capacities significantly enhances Mechel’s export potential in Asia and the Pacific and ensures guaranteed sales volumes for the Group’s coal products, taking into account the Elga deposit development.
Vanino Commercial Sea Port OJSC is the largest stevedoring company of Khabarovsk region. It provides handling and forwarding services. Cargo is delivered via Vanino to the north-eastern regions of Russia, Japan, South Korea, China, Australia, USA and other countries of APR. The length of the port’s berthing line is about 2.5 kilometers. The berths occupied by three industrial complexes are equipped in compliance with their specialization.
Mechel is an international mining and steel company which employs over 80,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value added products.