Metinvest Mining and Metallurgical Group through PrJSC Dniprovsky Coke and Chemical Plant (DKHZ, Kamianske, Dnipropetrovsk region), part of the group, will acquire an integral property complex of Dniprovsky Integrated Iron & Steel Works (DMK, Kamianske, Dnipropetrovsk region) for UAH 9.17 billion with a starting price of UAH 8.395 billion.
According to the information on the ProZorro.Sales platform, bids were accepted until July 25 inclusive, the auction was scheduled for July 26, but since one bid was submitted for the competition, the winner was determined without bidding.
Earlier, Interfax-Ukraine was informed that Metinvest would acquire DMK through its company, DKHZ.
DMK was undergoing reorganization as part of the bankruptcy proceedings of the enterprise.
Arbitration manager Oleksiy Sokol put up in ProZorro. Sales as part of the bankruptcy of PJSC Dniprovsky Integrated Iron & Steel Works (DMK, Kamianske, Dnipropetrovsk region) its single property complex with an initial price of UAH 8.4 billion.
According to information in ProZorro. Sales, applications are accepted until July 25 inclusively, and the auction is scheduled for July 26.
The materials specify that the possibility of price reduction is not provided, the buyer will be the legal successor of PJSC DMK, which currently employs 8,772 people.
As reported, the DMK was being reorganized as part of the bankruptcy proceedings of the enterprise. In January-June of this year, the company reduced the production of general rolled products, according to operational data, by 1.4% compared to the same period last year – to 1.3 million tonnes. Steel production was kept at the level of the six months of last year – 1.31 million tonnes, pig iron increased by 3.3% – to 1.25 million tonnes, but sinter production decreased by 1.2% – to 2.1 million tonnes.
Last year, DMK increased its production of general rolled products by 13.3% to 2.54 million tonnes, steel – by 15.2% to 2.56 million tonnes, pig iron – by 19.2% to 2.36 million tonnes, agglomerate – 40.2%, up to 4.06 million tonnes.
The company is controlled by the ISD corporation which was founded in 1995. It is an integrated holding company that owns or manages stakes in mining and metals enterprises. The corporation also includes the Alchevsk Iron and Steel Works, over which control has been lost since the end of 2017, as well as the ISD-Dunaferr Iron and Steel Works (Hungary). ISD-Huta Czestochowa (Poland) was sold by the Polish authorities to Liberty Steel as part of the bankruptcy process, and ISD lost control over the enterprise.
