Evraz Highveld shares have grown almost doubled after the sale reports

Promotions of the South African, now probably the former Evraz Evraz Highveld Steel and Vanadium limited (Evraz Highveld ”), today in a few hours have grown by 81% against the media reports on the sale of the NEMASCORE (PTY) consortium LTD. This is written by Bloomberg.

The Benz Highwell shares in August 1990, the growth of the Evraz Highweld shares is also accompanied by a record volume of transactions. More than 150 thousand shares passed into other hands during the last trading sessions.

Yesterday, Evraz PLC signed a protocol with the South African company NEMASCORE (PTY) LTD about selling her share in Highveld Steel and Vanadium limited for $ 320 million. The protocol states that the transaction will be completed no later than the second quarter of 2013.

The sale of the metallurgical plant Euraz is due to the fact that the new government of South Africa requires that the enterprises located on its territory belong to local businessmen. The Black Economic Empowerment (B-BBEE) program persistently, is designed to correct the mistakes of the past, when apartheid reigned and blacks did not allow any sectors of the economy. B-BBEE obliges local companies to work with blacks in matters of procurement, licensing, public partnerships and the sale of state-appropriations.

“Evraz Highveld has always been an important part of the business for the company. After the sale of Evraz Highveld, we will focus on the key markets of steel - Russian and North American, and continue to implement our strategy of operational improvements and building a more vertically integrated business. We do not expect that the transaction will affect the position of Euraz as one of the largest players in the global Vanady market. The development of our vanadium business will be based on an integrated business model, combining assets in Russia, the USA, Europe and our remaining enterprises in South Africa. We count on further close cooperation with the future owners of the enterprise, taking into account the presence of Euraz in the Vanadian business of South Africa, ”President of Euras Alexander Frolov commented on this ambiguous transaction.