Russian mining company
) announced the sale of a 28% share in Vanino Sea Trade Port
OAO's equity capital, retaining only a small stake for itself.
Mechel Group, as represented by its unit Mecheltrans OOO, sold
the stake to an outside investor for RUB5.04 billion (roughly
In Jan 2013, Mecheltrans OOO acquired the stake in Vanino Sea
Trade Port from one of the port's minor shareholders - a
subsidiary of En+. The transaction was funded by the investor who
financed the acquisition of Port Vanino's controlling stake and
thus had no impact on Mechel Group's leverage.
Mechel stated that the investors are not interested in
transhipping their products through Port Vanino, which will
enable it to use the port's entire capacity for their own
interests. One of the largest ports in Russia, Port Vanino's
favorable location will support Mechel's expansion into the Asia
Pacific region. The port is also open for navigation throughout
the year and is the largest transport hub in the Khabarovsk
According to Mechel, Port Vanino's coal transhipment capacity
can be increased to 7 million tons in 2013 without incurring any
significant costs. This also saves Mechel from building its own
storage terminal at Vanino for the next 3-5 years. By utilizing
the facilites of the port, Mechel can expand its customer
Mechel currently retains a short-term Zacks Rank #4
Other companies in the steel industry with favorable Zacks
Companhia Siderurgica Nacional
Shiloh Industries Inc.
). While both Companhia Siderurgica and Shiloh Industries
hold a Zacks Rank #1 (Strong Buy), Gerdau retains a Zacks Rank #2
MECHEL OAO ADS (MTL): Free Stock Analysis
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