The shares were sold to Goldman Sachs International, which plans to sell shares in the form of shares and GDRs to institutional investors outside the United States in accordance with Regulation S (Regulation S) of the United States Securities Act of 1933 (“United States Securities Act "), As well as qualified institutional investors in the United States in accordance with Rule 144A of the US Securities Act.
Upon completion of the sale, FLETCHER GROUP HOLDINGS LTD will continue to own 81 percent of NLMK's authorized capital, while the number of securities in free circulation will increase to 19 percent.
NLMK expects that an increase in the share of free float shares should lead to an increase in the liquidity of the company's shares. In accordance with the terms of sale, FLETCHER GROUP HOLDINGS LTD has committed itself not to dispose of shares for at least 90 days.
The price of NLMK's receipts on the London Stock Exchange at the close of trading on Thursday was $ 27 per GDR. Thus, the value of the package put up for sale without discount to the market is about 425 million US dollars, or, according to the quotations of the Moscow Exchange, about 27 billion rubles.
At the beginning of trading on the Moscow Exchange on Friday, NLMK shares fell 5.5% (to RUB 161 per share) on news of the sale of part of the stake on the open market.
Vladimir Lisin owns 95.74 percent of Fletcher directly and through Rumelko LLC, the remaining 4.26 percent belongs to RiskInvest Holding Yuri Lisin, the businessman's son.
NLMK held an IPO in December 2005. Then 7 percent of the company's capital was sold by Lisin's structures at $ 14.5 per GDR, the transaction amount was $ 609 million. In December 2016, Fletcher sold 1.5 percent of NLMK's capital on the market; the main owner of the company earned $ 153.1 million on the deal.
In January last year, Lisin told reporters that he could not potentially rule out an SPO for NLMK in a good market condition, but he did not name the possible timing of the deal.
