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Severstal Acquires Remaining Interest in Severstal Liberia Iron Ore

04/11/2012 - OAO Severstal has completed the transaction to acquire the remaining 38.5% minority interest in Severstal Liberia Iron Ore Ltd. from its partner, Afferro Mining Inc.

OAO Severstal has completed the transaction to acquire the remaining 38.5% minority interest in Severstal Liberia Iron Ore Ltd. (SLIO), a British Virgin Islands registered entity, from its partner, Afferro Mining Inc.
 
Under the sale and purchase agreement, Severstal has met its obligations regarding the initial cash payment of US$65 million, which the company made through its subsidiary Lybica Holdings B.V. The initial payment comprised a US$55.25 million payment to Mano River Iron Ore Holdings Limited, Afferro’s wholly owned subsidiary with the remaining US$9.75 million to be held in escrow with a third party.
 
Initial terms of the deferred cash payment under the sale and purchase agreement remain unchanged.
 
ОАО Severstal, one of the world’s leading vertically integrated steel and steel-related mining companies, holds assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal reported revenue of $13,573 million and EBITDA of $3,263 million in 2010, and its crude steel production in 2011 was 15.3 million tonnes.