9 Nov 2017 10:24

Mordashov sells 2.1% of Severstal for $14.97/GDR - organizer

MOSCOW. Nov 9 (Interfax) - The placement price in the sale of 2.1% of Severstal by Pearlgreen Limited, which is owned by the Russian steelmaker's principal shareholder and chairman Alexei Mordashov, was $14.97 per GDR and 885.35 rubles per share, the bookrunner of the deal, Goldman Sachs reported.

A total of 18,040,892 Severstal shares/GDR are being sold in the deal, which could total $270 million or 15.97 billion rubles based on the placement price.

Severstal closed at $15.35 per GDR and 911.50 rubles per share on Wednesday. The discount to the market was therefore about 2.5% for the GDR and slightly more for local shares. It was reported earlier that an exchange rate of 59.14125 rubles/$1 will be used for settlement for shares listed on the Moscow Exchange .

Severstal will not get any proceeds from this placement. Mordashov and his companies, which will retain about 77% of the steelmaker after the sale of the 2.1%, have agreed to a lock-up arrangement under which they will not sell any shares in the company for three months after the deal.

Severstal's free float is now 20.8%, according to the company. The company's shares are included in the MSCI Russia Index.

Mordashov has many assets that are not related to Severstal's business, both in Russia (Power Machines; Sveza; retailer Utkonos; online services; gold miner Nordgold with deposits in Russia, Kazakhstan and Africa; and minority stakes in Tele2 and NMG), and abroad (TUI Group). Forbes estimated Mordashov's fortune at $16.8 billion in July 2017, the highest in Russia.