Severstal sees no possibility for selling Lucchini in near future - Mordashov
MOSCOW. Mar 3 (Interfax) - OJSC Severstal sees no possibility for selling Italy's Lucchini in the near future, Alexei Mordashov, Severstal's main beneficiary and general director, said during a conference call.
"The sale of the company doesn't look realistic under current market conditions and bearing in mind its large debt," he said, adding "As a result, a decision has been made to deconsolidate the asset. Now our goal isn't its sale but presenting a business plan for the company's development."
However, Mordashov said that negotiations for the sale of Lucchini are actively continuing. He added by banks have been involved in this process.
Unofficial reports earlier said that Severstal and Mordashov, who is the majority shareholder in Lucchini, had reached an agreement with the Italian company's bank creditors for restructuring its debt. The creditors are BNP Paribas, Intesa Sanpaolo, MPS and Unicredit have agreed to prolong the company's debt (around 770 million euro) by providing an additional bridge-loan worth 50 million for financing the company' circulating capital.
Media reports surfaced in January that Mordashov had introduced changes to the offer to Lucchini's creditors, which concerned the quick sale of its French enterprise Ascometal.
It was earlier reported that Severstal closed its sale of 50.8% in Lucchini S.p.A. on June 30 to a company owned by its main shareholder Mordashov for a symbolic amount.
The company retained its right buy shares back on the same terms. If Mordashov is able to sell the packet to a third party sometime in the future for a large amount the revenue from this transaction will go to Severstal.
Severstal owned the remaining 49.2% in Lucchini.
Lucchini's debt came to 800 million euro when control was sold to Mordashov.
The company includes enterprises in Italy (Lucchini Piombino) and France (Ascometal).