russias-evraz-pays-15-billion-for-foothold-in-china

Russia's Evraz pays $1.5 billion for foothold in China

In its first foray into Asia, the Russian steel company acquires a controlling stake in Delong Holdings.

By Sameera Anand

February 19, 2008

Russian steel producer Evraz Group will acquire 51% of China's Delong Holdings for S$1.08 billion $765 million, triggering an offer to the residual minority shareholders. Assuming that all shareholders tender their shares and all outstanding warrants are exercised, EvrazÆs total outlay on the deal will be $1.49 billion.

Evraz has valued 100% of Delong at S$2.12 billion on an equity value basis. The Beijing-headquartered firm operates an integrated steel mill in China that manufactures steel billets and coils, both for domestic consumption and export. Delong also has a subsidiary, Dexin Steel, which is a steel trading and procurement company based in Singapore.

Delong, which has been listed in Singapore since 2005, is being represented...

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