MMK to buy another add'l issue of Turkish subsidiary
CHELYABINSK. April 22 (Interfax) - The shareholders in OJSC Magnitogorsk Iron & Steel Works (MMK) at an in-absentia extraordinary meeting on April 18 approved the acquisition of Turkish subsidiary MMK Metalurji's additional issue, the company reported.
According to MMK's materials, this additional issue is worth $558.475 million.
Prior to that, MMK decided to participate in another additional issue by MMK Metalurji, this one worth $190 million.
In both cases, the proceeds will be used for general corporate needs, a company spokesman previously told Interfax.
MMK has owned 100% of the Turkish company since September 2011. In 2007, the first step of buying the Turkish metal complex cost MMK $102 million. MMK consolidated the entire company within four years by purchasing 50% minus one share for $485 million.
MMK is one of the largest metals producers in Russia. Its main beneficiary is the chairman of its board of directors Viktor Rashnikov, with 86.6% of shares.