Ukrainian iron and steel holding Metinvest spent $750 million on 99.8% of the Zaporizhstal Group.
Metinvest said in its annual report that it bought a further 74.9% of Zaporizhstal Group, which used to be known as Industrial Group, for $512 million last year. The Group's main asset is a 50.0032%-stake in the Zaporizhstal steel works.
Metinvest's stake in Zaporizhstal Group increased from 24.9% to 99.9% during 2012, and its stake in the steel mill itself from 12.5% to 49.9%.
Metinvest said that as of the end of last year, its investment in Zaporizhstal was classified as a joint venture because strategic financial and operating decision-making requires the participation and approval of other Zaporizhstal shareholders.
Metinvest also said its stakes in the Krasnodvuhillia coal producer and Avdiyivka Coke and Chemical Works rose from 91.6% to 92.5% and from 91.7% to 92.6%, respectively, last year.
Metinvest increased its stake in the Khartsyzsk Pipe Works from 97.6% to 98%, that in the Azovstal steel works from 95.9% to 96.1%, Yenakiyeve steel works from 90.6% to 90.7% and the Illich steel works from 99.1% to 99.2%.
Zaporizhstal one of Ukraine’s biggest industrial plants, is being integrated with Metinvest, which is owned by System Capital Management (71.25%) and Smart Holding (23.75%), which, in turn, belong to Rinab Akhmetov and Vadim Novinsky, Ukraine’s top oligarchs.
Metinvest and a group of investors consolidated more than 50% of Zaporizhstal in July last year. It also received Industrial Group’s stales in a whole range of other mining and metallurgical plants, among them Zaporizhkoks, Luhansk Pipe Mill, Zaporizhia Iron Ore Plant and Zaporizhvohnetryv.
