Evraz Group gets European Commission’s permission to control Highveld Steel and Vanadium Corporation Limited

27 February 2007 (14:42)

Evraz Group obtained the European Commission’s permission to control Highveld Steel and Vanadium Corporation Limited (provided it complies with a number of requirements). According to the spokesperson for Evraz, the decision was made by the European Commission at an early stage of considering the case in terms of compliance with the antimonopoly law.

Evraz is going to sell some of Highveld’s vanadium-production facilities and related assets, including some Vanchem facilities in WitBank, the South African Republic, their share in Mapoc mine, and a 50% share holding of South Africa Japan Vanadium (Proprietary) Limited, a joint venture. Evraz Group has also taken upon the responsibility for supporting the existing agreements for the supply of vanadium to a certain group of consumers. By getting control of Highveld, Evraz Group is hoping to get access to the growing South African rolled metal market.

According to the agreement announced in June 2006, Evraz Group and Credit Swiss International acquired 24.9% each of Highveld’s authorized capital from Anglo South Africa Capital (Proprietary) Limited. Evraz now has a share-raising option in Highveld following the approval of the regulating authorities, including those of the South African Republic. The company has already applied for this and is now waiting for the decision of the country’s antimonopoly bodies. After all the permissions have been obtained, Evraz will be allowed to buy the remaining 29.2% of Highveld’s capital from Anglo American and acquire the 24.9% holding from Credit Swiss. This will make the company the owner of approximately 79% of all of Highveld’s shares and the only controlling shareholder. The laws of the South African Republic state that after the company gets more than 35% of shares, it will have to suggest that all of Highveld’s shareholders offer their stocks for sale.

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