Bagrin stepping down as head of steel maker NLMK, Fedorishin to replace him
MOSCOW. Jan 17 (Interfax) - Oleg Bagrin is stepping down as president of NLMK .
The steel maker said in a statement that its board of directors on January 16 decided to convene an extraordinary shareholders meeting on March 12 to elect a new President (CEO) and Chairman of the Management Board. The EGM will be held by absentee ballot. The record date for shareholders entitled to participate in the EGM is January 29.
NLMK shareholders holding in aggregate at least 2% of voting shares have the right to put forward candidates for the position of NLMK President by February 12.
NLMK told Interfax that it was expected Bagrin would quit as president but continue to serve on the board of directors.
"The decision to elect a new president was planned, Bagrin himself initiated it," NLMK said. "All strategic goals were achieved last year. The structural effect of the strategic projects exceeded $1 billion. EBITDA has grown 70% from the 2013 level, debt has declined to a minimum and dividends have reached a record high," it said.
A source with knowledge of the steelmaker's plans, told Interfax that Grigory Fedorishin, who became Senior Vice President of NLMK in March 2017, would replace Bagrin as President. "Fedorishin is "a member of Bagrin's team and continuity will be ensured," the source said.
NLMK did not say what Bagrin might do next other than that he would continue to serve on the board as he has done since 2004, and on the board's strategic planning committee. Sources closed to NLMK told Interfax that Bagrin might chair that committee, which is currently headed by Vladimir Lisin, NLMK's core shareholder.
NLMK will submit the final results of its five-year strategy to the board in March. The company told Interfax that its achievements under the strategy included full self-sufficiency in iron ore, boosting steel production by 2 million tonnes, reducing costs 25% and doubling the profit margin. It is expected NLMK will present a new five-year strategy in the summer.