Mining and steel company Mechel has agreed to raise its majority stake in the Elga coking coal complex in Russia’s Far East, in contrast to reports last month it might divest more shares in the asset to reduce its debt. Mechel has agreed to buy back a 34% stake in Elga out of the 49% it sold earlier to Gazprombank, spokespeople for the two companies told S&P Global Platts. They declined to disclose the timeline or value of the transaction. Mechel had to sell a 49% stake [and reduce its stake to 51%] in Elga to Gazprombank in June 2016 for Rb34.3 billion ($495 million) to raise finance to restructure its debt totaling $6.17 billion at the end of 2015. Under the terms of the deal, Gazprombank had an option, effective three years on, to sell those shares back to Mechel or find another buyer should Mechel opt out of the buyback.
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