March 19, 2019, 13:48 / Business

Vice President of Evraz explained the decline in Abramovich's share as protection from sanctions

The reduction in the combined share of businessmen Roman Abramovich and Alexander Abramov in Evraz following the SPO makes the company less vulnerable to possible sanctions, said Evraz Vice President for Finance Nikolai Ivanov. His words are quoted by Interfax.

Ivanov clarified that after the transaction for the sale of 1.8% of Evraz shares , the two key shareholders of Evraz will collectively own less than 50% of the shares. “If sanctions are imposed against one of the key shareholders, Evraz will be much less vulnerable,” explained the top manager of Evraz. He added that the company’s shares are now distributed among several structures and the controlling stake does not belong to any of them (until September 2018, approximately 63% was owned by Lanebrook, the common company of Abramovich, Abramov and their partners).

Abramovich's structure will sell shares of Evraz for almost $100 million

Business/Industry

Treasury Director Evraz Daria Kim added that the risk of sanctions against the company reduces the significant role of its division in the rail and pipe market in the United States. The company is also a major employer in this country.

Key shareholders of Evraz the day before, March 18, placed 25.4 million (1.8%) shares at a price of 5.95 pounds sterling per share (discount of about 5.6% by Monday’s close). The value of the package is approximately $212.5 million, based on the company’s capitalization on the London Stock Exchange, which at that time was approximately $11.8 billion. Abramovich now has 30.52% of Evraz through Greenleas International. Abiglaze Abramov has 20.69%, Crosland Global Frolov has 10.33%. After the sale of the 0.81% stake, Abramovich's share will decrease to 29.71%. The shares of Abramov’s and Frolov’s structures will decrease after the transaction by 0.6 and 0.29%, respectively, and together will amount to 30.13%.