SCM Allowed to Concentrate Shareholdings in Donetskkoks and YeKHP
OREANDA-NEWS. June 13, 2012. Cyprus-based SYSTEM CAPITAL MANAGEMENT LIMITED fully owned by SCM Group has received a permit from the Serbian Commission for Protection of Competition to concentrate over 50% of shareholdings in Donetskkoks and Yenakievskiy Koksohimprom (YeKHP). At the moment SCM Group owns 37.51% in Donetskkoks and 9.99% in YeKHP.
Concentration is expected after the appropriate permits are obtained, with the shares to be bought in the secondary market at market value.
The acquisition seeks to ensure a continuous supply of coke to Metinvest businesses to satisfy their production needs within the vertical integration and to manage productivity of Donetskkoks and YeKHP.
“The acquisitions will help us to manage production cost of Metinvest more efficiently through integration. We will be able also to ensure Metinvest's production with sufficient coke volumes, which is especially important as three old coke batteries at Azovstal will be shutdown," commented Amir Aisautov, SCM Director of Mining & Metals Business Development.
Once SCM Group receives control over these businesses, they will be integrated into Metinvest Holding (Mining and Metals Holding of SCM).
The deal will be funded with SCM Group's own money.
System Capital Management (SCM) is a professional investor, the managing company of the biggest Ukrainian financial and industrial group focusing on mining and metals, power generation and distribution and finance. The company also operates in other sectors including telecommunications, media and real estate, retail, clay mining, petroleum products trade, agriculture, pharmaceuticals trade, heavy engineering and transportation.
SCM Group includes Metinvest Holding, DTEK, First Ukrainian International Bank, Renaissance Capital Bank, ASKA and ASKA-Life insurance companies, Vega Telecommunications Group, Ukraina Media Group, Segodnya Multimedia publishing holding, ESTA Holding (real estate), Ukrainskiy Retail (retail), UMG (clay mining), Parallel (petroleum products operator), HarvEast (agriculture), Ukrainian Pharmacy Holding, Mining Machines holding, Portinvest transportation holding and others.