Business
Mandatory Tender Offer re Minority Stake in Timir
Mandatory Tender Offer re Minority Stake in Timir.
About this update from Evraz Plc
[{"type":"text","content":"\n \nRNS Number : 5158D Evraz Plc 29 April 2013 \n \n\nMandatory Tender Offer in Respect of Minority Stake in OJSC Timir\n \n29 April 2013 - Following the announcement dated 2 April 2013 of its acquisition of a 51% stake in OJSC Timir (\"Timir\"), EVRAZ plc (LSE: EVR) announces that in accordance with Russian regulatory requirements it has submitted today to Russia's Federal Service on Financial Markets (FSFM) and to Timir a mandatory tender offer to Timir's shareholders to acquire those shares in Timir that it does not currently own (the \"Tender Offer\"). Under the Tender Offer, EVRAZ has made an offer of RUB1,021.9243 (approximately US$32.7) for each share in Timir. \n \nThe Tender Offer is a Russian law requirement and it is EVRAZ's expectation that the Tender Offer will not be accepted by Timir's shareholders.\n \nThe Tender Offer will remain open until 8 July 2013, and EVRAZ will update the market as to acceptances within 30 days after that as stipulated by the law. \n \nNotes to editors\n \nTimir is a joint venture between EVRAZ and Alrosa created for the development of iron ore deposits and is currently holding licences for 4 iron ore deposits (Tayozhnoye, Desovskoye, Tarynnakhskoye and Gorkitskoye) in the southern part of Yakutia in Russia with total mineral resource base under the Russian geological classification of 3.5 billion tonnes (Russian geological categories of A+B+C1). EVRAZ acquired a 51% stake in Timir for RUB4,950 million (approximately US$160 million) to be paid in several instalments. If all the shares subject to the Tender Offer are tendered, EVRAZ could be liable to pay a further US$152 million in cash consideration. As at 31 December 2013, Timir had gross assets of approximately RUB10,662 million and loss before tax of approximately RUB46 million.\n \nThe first phase of the Timir project involves development of the Tayozhnoye deposit with total mineral resources under the Russian geological classification of 341 million tonnes of iron ore (Russian geological categories of A+B+C1) and grades of 38-40% Fe. The Tayozhnoye deposit is located 150 km north of Neryungri city, an important industrial centre in the southern part of Yakutia, and close to the existing infrastructure - a railroad, power grid and a paved road. The min...