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Mechel Announces Offering of Preferred Shares by Selling Shareholders

04/14/2011 - Mechel OAO announces the launch of a public offering by certain selling shareholders of the preferred shares of Mechel OAO.

Mechel OAO has announced the launch of a public offering by certain selling shareholders of the preferred shares of Mechel OAO.
 
The preferred shares are being offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice. The Selling Shareholders propose to offer up to 26,000,000 preferred shares to Russian and international investors. The Offering has been registered with the U.S. Securities and Exchange Commission under an automatic shelf registration statement filed by Mechel.
 
Mechel has applied for admission of the preferred shares to trading (without listing) on the Open Joint Stock Company “Russian Trading System” Stock Exchange and on the Closed Joint Stock Company “MICEX Stock Exchange”. The company expects the preferred shares to be admitted to trading prior to settlement of the preferred shares sold in the Offering, under the symbol “MTLRP”.
 
Morgan Stanley & Co. Incorporated and Renaissance Securities (Cyprus) Limited will act as Joint Global Coordinators and Joint Bookrunners for the Offering, while VTB Capital will act as a Joint Bookrunner for the Offering. VTB Capital is not registered as a broker-dealer with the SEC, therefore any offers and sales of the preferred shares by VTB Capital in the United States will be made through one or more SEC-registered broker-dealers, which may be affiliates of VTB Capital, to the extent required by applicable U.S. securities laws and regulations.
 
Coalmetbank will market the preferred shares to the general public in the Russian Federation, but will not underwrite any of the preferred shares sold in the offering.
 
Mechel, one of Russia’s leading companies, conducts business in four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power, and its products are marketed domestically and internationally.