Merging MMK named after Ilyich with Metinvest will not bring any benefits for MMK to them. Ilyich - expert opinion

According to Alexander Makarov, the analyst of Phoenix Capital, the benefits of the merger of the two largest metallurgical companies of the Ilyich MMK will not receive.

"MMK named after Ilyich will not receive cheaper raw materials, since Metinvest sells iron ore and coke to his enterprises at market prices, i.e. Azovstal and EMZ are no more profitable than all other metallurgical plants of Ukraine. Investments in metinvest in MMK named after $ 2 billion (declared at meetings of shareholders) also not The sources of such capital costs are not known for borrowings, and the time of the planned investment is also unknown to the MMK. The amount of funds and we do not see the reason for the MMK to receive financing earlier or in a larger amount.

MMK loss to them. Ilyich in the 1st quarter of 2010. amounted to $ 5 million and difficult conditions for manufacturers have survived in the second quarter. The companies were clamped between falling prices for steel and rising prices for raw materials. The forecast for the second half of the year is also not too positive, since suppliers of iron ore and coke will pull all the profit from the chain of Ruda-Cox-metal. An additional threat, which is currently not taken into account by the market, is a reassessment of bond VAT. Accounts debt for VAT MMK named after Ilyich, which is more than $ 200 million, will be paid by state VAT bonds with a nominal yield of 5.5%. We believe that these bonds will be sold with a discount of at least 20%, which means MMK to them. This year Ilyich will have to write off about $ 40 million unforeseen losses. "

The only plus of the merger of the Ilyich plant and Metinvest is a guarantee of the plant protection from the Raider attack of Cyprus companies Emorsa Ltd, liberani Co. Ltd, Rewein Ltd and Formigos Holdings Ltd.

Based on materials delo.ua







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