DLA Piper is advising Russian coal mining company Raspadskaya on its demerger from steelmaker Evraz. Linklaters is advising Evraz on the transaction.
According to DLA Piper, "Raspadskaya currently provides approximately 70% of Evraz’s metallurgical coal supply requirements needed to support its operations. The demerger will result in the creation of two distinct publicly listed businesses with leading positions in their respective fields."
Raspadskaya is listed on the Moscow Exchange, while Evraz – a global steel, iron ore, and vanadium producing company operating mainly in Russia – is listed on the London Stock Exchange.
"The demerger will be effected by Evraz making an interim in specie distribution of the shares it directly holds in Raspadskaya (being approximately 90.9% of the total ordinary shares in Raspadskaya) to Evraz shareholders," DLA Piper reported.
"In order to generate sufficient distributable reserves to effect the demerger, Evraz proposes to capitalize the sum of USD 8.2 billion currently standing to the credit of its profit and loss reserve by way of issuing bonus shares, and then to subsequently reduce its share capital by canceling such bonus shares," Linklaters informed. "The demerger is a Class 1 transaction under the UK Listing Rules and is subject to approval by Evraz shareholders as well as being contingent on the capital reduction becoming effective."
The DLA Piper team was led by Partner Julien Hansen and included Partner Igor Venediktov, Counsel Alexander Klochkov, Senior Associates Irina Samoylova and Zaurbek Timaev, and Associates Yulia Berezina and Alexander Mysov.
The Linklaters team was led by London-based Partner Hugo Stolkin and included Partner Rachel Barrett and Associate Thomas Bishop.