Sharenet Sites 
Sharenet Sites
Sale by EVRAZ plc of a 34% stake in the Company and withdrawal of cautionary announcement.
EVRAZ Highveld Steel and Vanadium Limited
Incorporated in the Republic of South Africa)
Registration No: 1960/001900/06)
Share code: EHS ISIN: ZAE000146171
(“the Company”)
Sale by EVRAZ plc ("Evraz") of a 34% stake in the Company
and withdrawal of cautionary announcement.
Shareholders of the Company (“Shareholders”) are referred
to the cautionary announcement released by the Company on 7
April 2014 and the further cautionary announcement released
by the Company on SENS on 1 July 2014 (collectively, the
"Cautionary Announcement"), in terms of which Shareholders
were advised of the engagement by Evraz with potential
purchasers. Evraz has concluded this process and has
released the following announcement:
“EVRAZ plc (LSE: EVR) (“EVRAZ”) has signed an agreement to
sell 34% of the issued share capital in the Company held by
EVRAZ to Macrovest 147 Proprietary Limited (“Macrovest”)
for ZAR 289 million (equivalent of USD 27 million as of 12
August 2014). As a result of the transaction, EVRAZ will
remain a 51% shareholder of the Company. It has been agreed
that Macrovest will also refinance 50% of the outstanding
working capital facility provided by EVRAZ.
Macrovest is led by Barend Petersen, a chartered accountant
with significant local and global experience. Mr Petersen
is the executive chairman of De Beers Consolidated Mines,
and a non-executive director of De Beers Group, Ponahalo
Group, Anglo American South Africa, Alexander Forbes, Curro
Holdings as well as Sizwe Business Recoveries which he
founded in 1998. He is also the chairman of the Environment
Community Occupational Health and Safety Committee of De
Beers Group. The sale of such a significant interest in the
Company to a local strategic investor is an important step
to ensure sustainable development of the Company as South
Africa’s leading steel and vanadium business.
Alexander Frolov, EVRAZ CEO, said,
‘We have analysed various options for the further
development of the Company and decided to introduce a
strong local partner, who we believe will add significant
value and expertise in developing our South African asset
in a challenging market. We are looking forward to working
together with Macrovest and Mr Petersen personally on the
Board of the Company. As a result of the transaction, EVRAZ
will remain a 51% shareholder of the Company and continue
to focus on growing operating efficiency and profit
enhancing initiatives.’
Barend Petersen said,
‘This transaction is significant, not only for the Company,
but also for the whole sector of the beneficiation of
minerals mined in South Africa. We are optimistic of the
Company’s future development as a reliable and sustainable
steel and vanadium producer and significant local employer,
and are certainly pleased to make this strategic investment
in the Company as a part of global EVRAZ group.’
Commenting on the announcement by EVRAZ, Trade and Industry
Minister Rob Davies said:
‘The Department of Trade and Industry (the “DTI”) welcomes
the transaction as a major step on the road to creating
black industrialists. The South African Government has long
held the view that the local steel sector is a critical
pillar of regional industrial and economic development.
Therefore, the DTI views this transaction as a major
development for the local steel industry and we welcome the
fact that a South African entity will be holding a
significant stake in this strategic asset. The steel sector
is of critical importance to South Africa's infrastructure
investment programme, amongst others, and it is in this
light that we are watching this transaction and other
developments with keen interest.’”
In the circumstances, the Cautionary Announcement is hereby
withdrawn and Shareholders are no longer required to
exercise caution when dealing in the Company’s securities.
For further information:
EVRAZ plc
Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
EVRAZ plc
Investor Relations:
London: +44 207 832 8990 Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ Highveld Steel and Vanadium Limited
Investor Relations:
Anré Weststrate
eMalahleni: +27 13 690 8888
eMalahleni
13 August 2014
Sponsor
J.P. Morgan Equities South Africa (Pty) Ltd.
Date: 13/08/2014 12:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
