UMMC buying shares from Chelyabinsk Zinc minority shareholders at 8% premium
MOSCOW. Dec 22 (Interfax) - Chelyabinsk Zinc Plant (CZP) received a mandatory offer from Urals Mining and Metallurgical Company (UMMC), which controls 95.57% of CZP, to buy shares from CZP's minority shareholders on Thursday, the company said.
The purchase price is 681 rubles per ordinary share, an 8% premium over the share price on the Moscow Exchange, which is 630 rubles. The last closing price for one Global Depositary Receipt (GDR), which corresponds to one CZP share, was $10 on the London Stock Exchange.
The offer is valid for 75 days from the moment it was received.
UMMC is offering to buy 2,402,507 shares, which would cost it 1.636 billion rubles in total. Gazprombank will guarantee the transaction.
UMMC has consolidated 95.57% of CZP and the Federal Antimonopoly Service (FAS) has cleared it to increase its stake to 100%.
CZP is Russia's biggest zinc and zinc alloys producer.
It plans to produce 173,000 tonnes of saleable zinc and alloys in 2016, compared with 171,000 tonnes in 2015, when output grew 1.4% compared with 2014.
UMMC is one of Russia's leading producers of cathode copper, zinc, lead and nonferrous metal rolled products. The company has more than 40 divisions located in various regions of the country.