OREANDA-NEWS. June 01, 2010. On Monday, news was made public about the purchase of Zaporizhstal <ZPST UK N/R> steel maker by undisclosed Russian investors. According to the unofficial information, the deal worth UAH 1.7bn was financed by the Russian Vneshekonombank (VEB Bank). The top management of the Company claims no more information on the deal is available at this point but confirm that the deal about the acquisition of Zaporizhstal with Rinat Akhmetov’s  “Metinvest” had been wrecked at last moment.

Millennium Capital: this news has a dual nature. On the one hand, it caused the price of the Company’s stocks to go up 36%. But, on the other hand, withdrawal of “Metinvest” from the deal undermines the market’s expectations of the dividend payout to be approved by the Azovstal <AZST UK BUY> and Avdiivka Coke Plant <AVDK UK BUY> AGMs scheduled for June 4 and 10, respectively. It is an open secret that “Metinvest” has started earlier to concentrate cash funds for the Zaporizhstal purchase, which funds are no longer needed after Metinvest failed to close the deal. As a result, the stocks of AVDK lost 1.06% despite the overall growth background.