Share of minority shareholders of Mechel JSC goes down

Mechel JSC Chairman Igor Zyuzin has increased his share holding up to 52.2% through a number of private transactions that have been done within the framework of the agreement signed by Mr Zyuzin and the company’s General Director Vladimir Yorikh. 23% of the company’s shares are now offered publicly, which is the largest figure among the Russian ore mining and metallurgical companies.

The ongoing fall of Mechel’s stocks (presumably brought about by Prime Minister Vladimir Putin’s unfavorable critique) has already made some of the company’s investors lose money. The share quotations dropped by over 45% and 40% at Russian stock exchanges and at New York Stock Exchange, respectively, on July 25, 2008. The enterprise’s market capitalization decreased by more than 115 billion RUR in just one day. Mechel Group reports about a quarter of their shares can be bought and sold freely, while the rest of the stock belongs to investors, Igor Zyuzin being the major one. Following the

Mechel JSC Chairman Igor Zyusin owns 47.1% of the company’s shares after the first transaction has been performed between him and V. Yorikh, the company’s spokesperson said to UrBC representative. A 3.4% share holding is now available to investors. To find the money, Mr Zyusin had to sell 15.9 million GDR that stood for 47.7 million shares and exchangeable UBS securities convertible to 6.8 million GDR that stood for 20.5 million shares; the total amount equaled to 68.2 million shares. The GDR cost 22 USD per share plus 7.8% discount added to the closing price at New York Stock Exchange. The

The major shareholders of Mechel JSC, metallurgical company of Chelyabinsk, decided to allow Chair of the Board Igor Zyuzin to buy a 42.2% share holding from GD Vladimir Iorikh within the next 12 months, the company’s spokesperson said to UrBC representative. Mr Zyuzin has been considering different options to cover these expenses, for example, stock exchange operations and strategic partnership. Regardless of the source of his purchase money, he is to keep at least 51% holding in Mechel joint stock. Meanwhile, Mr Iorikh will be gradually delegating his liabilities to the current Executive

Mechel JSC, an ore mining and metallurgical company, held the annual general meeting on July 3, 2006, the company’s spokesperson said to UrBC representative. The shareholders declared the dividend of 12.73 RUR per registered paperless share for 2005. The total amount of money meant for the payment of dividends should reach the point of 5.3 billion RUR ($195.7m). According to the Generally Accepted Accounting Principles of the United States, the dividends make up 50% of the company’s net profit. The dividends will have been paid on account by no later than December 31, 2006. The attendees also