NLMK Group, an international metallurgical company, and the Belgian investment fund SOGEPA have signed an agreement on the joint implementation of the development strategy of NLMK Belgium Holdings (NBH).
NBH includes production and service enterprises of the NLMK Europe division Flat products (NLMK La Louviere, NLMK Strasbourg, NLMK Manage Steel Center) and two production assets of the NLMK Europe Thick Plate division (NLMK Clabecq and NLMK Verona). NLMK and SOGEPA each own 49% of NBH shares.
The agreement signed provides for NLMK and SOGEPA to invest in NBH's share capital - 100 million euros each in the period from 2019 to 2021. The companies agreed to jointly support NBH in terms of bank financing by providing shareholder guarantees on a parity basis.
Shareholders' contributions are planned to be used to finance investment projects of Strategy 2022, which aim to increase the production of niche products with high added value in both European divisions.
The agreement also provides for the right of SOGEPA to exercise an option to sell 24% of NBH shares to NLMK Group in 2023.
Information about NLMK Group
NLMK Group is a vertically integrated metallurgical company, the largest in Russia and one of the world's most efficient producers of steel products.
NLMK Group metal products are used in various industries, from construction and mechanical engineering to power equipment and offshore wind turbines.
NLMK's production assets are located in Russia, Europe and the United States. The company's steel production capacity exceeds 17 million tonnes per year.
NLMK demonstrates high cost competitiveness among global manufacturers, the company's profitability is one of the highest in the industry. The company's revenue in 2018 was $ 12 billion, EBITDA was $ 3.6 billion. The Net Debt /EBITDA ratio was 0.25x. The company has investment grade credit ratings from S&P, Moody's, Fitch and Expert RA.
NLMK's common shares, which have a free-float of 19%, are traded on the Moscow Stock Exchange (ticker “NLMK”), global depository shares - on the London Stock Exchange (ticker "NLMK: LI"). The share capital of the Company is divided into 5,993,227,240 ordinary shares with a par value of 1 Russian ruble.
For more information on NLMK's share capital, please follow the link.
Download photos and corporate videos of NLMK Group at See the media bank here.
Information about SOGEPA
SOGEPA Investment Fund was founded in 1984 to support the economic development of the Wallonia region. SOGEPA contributes to the creation of sustainable businesses by investing in industrial projects and assets. The fund operates on the principles of efficient private investment, playing an active role in the strategic management of companies at the board level.
Together with private investors, SOGEPA is a reliable partner for companies located in the Wallonia region and for other industrial enterprises.
