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- OJSC Novolipetsk Steel (NLMK) Agrees to Acquire 100% Interest In DanSteel A/S
OJSC Novolipetsk Steel (NLMK) Agrees to Acquire 100% Interest In DanSteel A/S
OJSC Novolipetsk Steel, NLMK (LSE: NLMK) today announced that it has agreed to acquire DanSteel A/S (“DanSteel”), the Danish steel manufacturer, for USD104 million. The acquisition is to be financed in full from NLMK’s existing cash funds.
DanSteel produces around half a million tonnes of hot rolled steel heavy plates and maintains up-to-date customized production facilities. NLMK has a long-standing client relationship with DanSteel, being its major supplier of quality steel slabs since 2002. In the first 6 months of 2005 DanSteel’s gross revenues were USD$194 million, EBITDA amounted to USD$19.8 million, and total assets constituted USD $153 million.
DanSteel is currently 100% owned by Jysk Staalindustri ApS, which is controlled by NLMK’s main shareholder. Before the acquisition was agreed, an independent evaluation of DanSteel’s market value was performed by KPMG.
The acquisition is an important step in the implementation of NLMK’s growth strategy in the area of high value-added products aimed at achieving market-share gain in Western Europe and sustainable value enhancement.
Mr. Vladimir Lisin, NLMK’s Chairman and controlling shareholder, commented:
“The acquisition of DanSteel advances NLMK’s stated strategy - to pursue acquisitions of rolling capacities in its core markets, to increase production of finished value added products and to attain additional added value.”
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