Evraz May Buy Steel Trader Delong for S$2.1 Billion
Feb. 18 (Bloomberg) -- Evraz Group SA, the steelmaker part- owned by Russian billionaire Roman Abramovich, entered into agreements that may lead to a S$2.1 billion ($1.5 billion) takeover of Singapore-based steel trader Delong Holdings Ltd.
Evraz will initially acquire about 10 percent of Delong at S$3.9459 a share from Best Decade Holdings Ltd., Luxembourg-based Evraz said today in a statement distributed by the Regulatory News Service. That represents a 41 percent premium over yesterday's S$2.79 closing share price in Singapore.
Evraz said it has separate agreements to acquire a further 41 percent of Delong from Best Decade, including an option to buy a 32 percent stake. If that option is exercised, under Singaporean regulations Evraz will make an offer for the rest of Delong it doesn't already own.
Delong would be Evraz's first acquisition in Asia, the steelmaker said. Steel demand in China, the biggest user of the metal, is expected to expand more than 40 percent in the next three years, according to U.K. steel consulting company MEPS (International) Ltd.
The value of the deal was calculated using the 535 million shares that Delong had outstanding as of Feb. 12, according to Bloomberg data.
BLOOMBERG
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