Novolipetsk Steel sells Belgium's SOGEPA 20.5% of Belgium Holdings for 91.1 mln euros
MOSCOW. Sept 30 (Interfax) - The Novolipetsk Steel (NLMK) group has brought the state-run Belgian company Societe Wallonne de Gestion et de Participations S.A. (SOGEPA) on board as an investor in NLMK Europe, selling it 20.5% of the stock in NLMK Belgium Holdings S.A. (NBH) for 91.1 million euros, the Russian company said in a statement.
This deal provides the possibility of the NLMK group buying an option and SOGEPA selling an option to sell the corresponding stock interest in the period after 2015.
SOGEPA will gain the right to play a role in managing the NBH and its subsidiary companies, including making decisions on key issues together with NLMK, the group said. There will be four NLMK representatives and two from SOGEPA on the NBH board of directors.
The strategic investor being brought in took place in the context of the restructuring of the group's European assets.
"NLMK Belgium Holdings S.A. (NBH) comprises two subdivisions of NLMK Europe: NLMK Europe Strip and NLMK Europe Plate. NLMK Europe Strip comprises three companies with a total production capacity of 1.7 million tonnes: NLMK La Louviere (Belgium), NLMK Coating (France), NLMK Strasbourg (France), and a network of service centres. NLMK Europe Plate comprises two companies with a capacity of 0.9 million tonnes: NLMK Clabecq (Belgium) and NLMK Verona (Italy). NLMK Dansteel (Denmark) with a capacity of over 0.4 million tonnes, formerly part of NLMK Europe Plate, is not included in NBH," the statement says.
"We will continue to review available options for further developing our European rolling assets as part of NLMK Group's overall strategy, which aims to boost the company's efficiency," the group's President Oleg Bagrin is quoted as saying.