Business news from Ukraine

CENTRAL GOK INCREASES PRODUCTION OF CONCENTRATE BY 10% IN TEN MONTHS

Central Mining and Processing Plant (Central GOK, Kryvy Rih, Dnipropetrovsk region), a member of Metinvest Group, in January-October of this year, according to recent data, reduced the production of pellets by 2% compared to the same period last year – up to 1.86 million tonnes.
As the Interfax-Ukraine agency was informed in the company, 76,000 tonnes of pellets were produced in October, while in September – 202,500 tonnes.
For the ten months of 2020, the production of iron ore concentrate increased by 10.3% compared to the same period in 2019, up to 4.079 million tonnes, including 443,970 tonnes produced in October (in September – 399,520 tonnes).
“The reason for the decrease in production of pellets in October compared to the previous month is the autumn repairs at the pelletizing plant – the work was carried out for 21 days,” the company reported.
As reported, Central GOK in 2019 increased the production of pellets by 4.3% compared to the previous year, to 2.402 million tonnes, iron ore concentrate, by 0.5%, to 4.436 million tonnes.
Central GOK is one of the five largest producers of mining raw materials in Ukraine. It specializes in extraction and production of iron ore raw materials – concentrate with an iron content of 65% and 68.2%, as well as pellets with an iron content of 63.9%

, ,

LARGEST UKRAINIAN METALLURGICAL GROUP CONFIRMS INTENTION TO BUY SHARES OF DNIPROVSKY COKE PLANT

Cyprus-based Barlenco Ltd., affiliated with the largest Ukrainian mining and metallurgical group Metinvest, in accordance with the law on joint stock companies has confirmed its intention to exercise the right to compulsory redemption of shares (squeeze-out) from minority shareholders of PrJSC Dniprovsky Coke Chemical Plant (formerly Evraz-Dniprodzerzhynsk Coke and Chemical Plant, Kamianske, formerly Dniprodzerzhynsk, Dnipropetrovsk region)
According to the official data of the plant in the information disclosure system of the National Securities and the Stock Market Commission, Dniprovsky Coke Chemical Plant received a notification from the shareholders on November 18 of this year.
As reported, PrJSC Dniprovsky Coke Chemical Plant received a notification from Metinvest B.V. on the achievement of a dominant controlling stake in the enterprise on October 21 of this year. Then it was clarified that the direct share of Metinvest B.V. increased from 73.37% (500.623 million shares) to 97.01%. At the same time, the aggregate ownership of shares in Dniprovsky Coke Chemical Plant by Metinvest (with the affiliated company Barlenco Ltd (Cyprus), which owns another 2.09% of the company’s shares) reached 99.1%. price of UAH 1.62 per ordinary share.
As reported, Metinvest B.V. in April 2019 announced a proposal to buy back shares from minority shareholders of Dniprovsky Coke Chemical Plant as part of the sell-out procedure (buyback at the request of the minority shareholder based on Articles 68 and 69 of the law on joint stock companies).Metinvest B.V. in mid-March 2020, announced the completion of the transaction to acquire a stake in PrJSC Dniprovsky Coke Chemical Plant and currently owns about 73% of the company’s shares. Back in 2014, Metinvest Group sent an application to the Antimonopoly Committee of Ukraine to acquire a controlling stake in Dniprovsky Coke Chemical Plant. About a year ago, the AMCU approved this deal subject to a number of restrictions. Prior to this, Metinvest received a number of permits from the antimonopoly authorities of other countries to acquire this enterprise.
The charter capital of the plant is UAH 170.584 million.

,

METINVEST BONDS 2027 JOIN BENCHMARK EM INDEX

Bonds of Metinvest B.V. (Netherlands), the parent company of the Metinvest mining and metals group, due in 2027, is included in in the JPMorgan Corporate Emerging Markets Bond Index (CEMBI) series.
According to the company’s press release issued on Wednesday, the CEMBI indices provide a global benchmark tracking U.S.-dollar-denominated debt issued by emerging market corporations.
At the same time, the eurobond due in 2027 was issued on October 1, 2020 following the successful completion of a liability management exercise to extend the maturity of the group’s outstanding eurobonds. It met the criteria to be included in the CEMBI Broad and CEMBI Broad Diversified high-yield indices after a regular review on October 30, 2020. As a result, Metinvest’s U.S.-dollar-denominated eurobonds are all included in these two indices for the high-yield segment.
In addition, the eurobond due in 2029, which was issued on 17 October 2019, has effectively replaced the eurobond due in 2023 in the CEMBI and CEMBI Diversified high-yield indices after the size of the latter decreased to below $500 million.

,

METINVEST SEES EBITDA RISE BY 5.9%

The income of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in August 2020 decreased by 7.9%, or $72 million, to $838 million from $910 million, compared to the previous month.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements, the overall rate of EBITDA amounted to $216 million in August, which is $12 million more than in July ($204 million), while EBITDA from participation in the joint venture was $48 million (in July $30 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group for August 2020 amounted to ‘plus’ $91 million (in July ‘plus’ $57 million), including $7 million from participation in the joint venture (‘minus’ 5 million); EBITDA of the mining division totals $134 million (in July $154 million), including income from the joint venture $41 million ($35 million). The management company’s expenses amounted to $6 million ($6 million).
Total income in August consisted of $671 million ($700 million in July) from the metallurgical division, $258 million ($283 million) from the mining division, and intercompany sales of $91 million ($73 million).
The company’s total debt in August decreased by $64 million, to $3.017 billion from $3.081 billion, compared to July, while the total amount of money decreased by $88 million, to $523 million from $611 million.
Funds used in investment activities amounted to $54 million, in financial activities to $71 million.

,

METINVEST RAISES DIRECT STAKE IN DNIPROVSKY COKE CHEMICAL PLANT

Metinvest B.V. (the Netherlands), the parent company of Metinvest Group, has announced the acquisition of a dominant stake in PrJSC Dniprovsky Coke Chemical Plant (formerly Evraz-Dniprodzerzhynsk Coke and Chemical Plant, Kamianske, formerly Dniprodzerzhynsk, Dnipropetrovsk region) and intends to buy out the remaining shares from minority shareholders on the squeeze-out procedure.
According to the information of the plant, the issuer received a notification on October 21 from Metinvest B.V. company (the Netherlands) on the acquisition of a dominant controlling stake in the company.
At the same time, it is specified that the direct stake of Metinvest B.V. increased from 73.37% (500.623 million shares) to 97.01%. The aggregate ownership of shares in the plant by Metinvest (with the affiliated company Barlenco Ltd, Cyprus, which owns another 2.09% of the company’s shares), reached 99.1%.
The shares will be redeemed at a price of UAH 1.62 per ordinary share.
As reported, Metinvest B.V. in April 2019 announced an offer to buy out shares from the plant’s minority shareholders as part of the sell-out procedure (buyout at the request of a minority shareholder on the basis of Articles 68 and 69 of the law on joint-stock companies).

,

METINVEST WILL BUY BACK ALL 2021 EUROBONDS

Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, will buy back all 2021 eurobonds previously issued by the company for $ 115.3 million and part of 2023 eurobonds for $ 193.2 million, according to Metinvest B.V.’s report on the first results of obtaining consent to buy back its eurobonds maturing in 2021 and 2023 and the issue of new eurobonds.
According to the document, there are currently 2021 eurobonds in the amount of $ 115.3 million in circulation, and with amendments and recalculation with a fixed interest rate, $ 118.020 million will be spent on their redemption.
Currently, there are also 2023 eurobonds for a total of $ 504.515 million in circulation, while within the first stage (with the end of acceptance on September 28) applications for the redemption of these bonds for the amount of $ 193.227 million were accepted.
As reported, Metinvest is placing seven-year eurobonds worth $ 333 million with a yield of 7.95%. The demand for eurobonds exceeded $ 1.6 billion.

,