Evraz (Russia) has entered into an agreement to sell its PJSC Evraz Sukhaya Balka iron ore mining and beneficiation plant in Ukraine to a firm belonging to Oleksandr Yaroslavsky’s DCH Group for $110 million excluding the debt, Evraz said in a statement.
“Berklemond Investments Ltd, a part of Oleksandr Yaroslavsky’s DCH Group, has acquired Evraz Sukhaya Balka. The deal amounted to $110 million, which is comparable to the level of working capital and the debt of the iron ore enterprise,” DCH said.
According to a press release from Evraz Group, its 100% subsidiary Evraz Group S.A. signed an agreement on the sale of Kadish Limited (the parent company for Evraz Sukhaya Balka) to Berklemond Investments Ltd.
The consideration will be payable in several installments: an initial $25 million payable within two business days after signing a sale and purchase agreement, with the rest to be paid by December 31, 2017. The funds received will be used for general corporate purposes, including repayment of the company’s debt.
Evraz Sukhaya Balka enrichment plant is one of the leading Ukrainian enterprises specializing in iron ore underground mining. The annual production capacity of the plant is approximately 3.1 million tons of iron ore. In 2016 it mined over 2.5 million tons of lumpy ore. Sukhaya Balka has been a subsidiary of Evraz since 2007. (Interfax-Ukraine/Ukrainian metal)