Russia's Evraz seeks UK listing, share exchange

Mon Oct 17, 2011

* Steel company seeking entry to FTSE 100
* Seeks more liquidity, broader shareholder base
* Shares rise 8 pct in early trading
By Megan Davies

MOSCOW, Oct 17 (Reuters) - Russian steelmaker Evraz , part-owned by billionaire Roman Abramovich, said on Monday it would move its domicile to Britain, where it is seeking a premium listing on the London Stock Exchange and inclusion in the FTSE 100 Index.

The move would give it a broader shareholder base, better long-term access to capital and improved liquidity, Evraz said in a presentation to investors.

The company, with a market capitalization of more than $8 billion, is the third Russian company after miners Polyus Gold and Polymetal to announce plans for a London premium listing and FTSE 100 inclusion in recent weeks. .

Resources and metals stocks already dominate the London blue-chip index, accounting for approaching one third of the FTSE by market cap.

Evraz plans a share exchange offer to complete the move, where London-listed Evraz Plc will buy up to 100 percent of the share capital of Evraz Group S.A.

Evraz is currently a Luxembourg-domiciled company and its shares are traded in London in the form of global depositary receipts.

The company's shares rose 8.4 percent on the London Stock Exchange on Monday, adding to a rise of 19 percent for the month so far, after it announced a special dividend last week.

Still, shares are trading at about half the level they were at the beginning of the year.

Under the swap, shareholders will receive nine new shares in Evraz for each existing share they now own.

Evraz said it expected to be included in the FTSE 100 Index and would be the only steel stock in the UK share market.

Rival Tata Steel is listed in Mumbai and ArcelorMittal is listed in Luxembourg.

"We now have a free float of about 25 percent, which is enough for a premium listing," Finance Director Giacomo Baizini told reporters. "Under the deal, the company has no plans to place new shares, especially in current market conditions."

Evraz said that, following the move, it would seek to maintain a long-term average dividend payout ratio of at least 25 percent of its consolidated net profit.

Biggest shareholder Lanebrook, which currently owns 72.25 percent of the company, has agreed to accept the offer, the company said.

Evraz said it planned a management roadshow for the next two weeks and that final acceptances of the offer were due by Nov. 4. It expects to start trading on the London Stock Exchange on Nov. 7 and to be included in the FTSE at the index's next reshuffle on Dec. 19.

Morgan Stanley and Credit Suisse are acting as joint sponsors to Evraz, the company said.

Evraz also announced on Monday its crude steel output rose by 4 percent year-on-year in the third quarter of this year.

(sourced Reuters)

Fortescue Metals considers dual listing in Hong Kong - report

Mon Mar 28, 2011

MELBOURNE, March 28 (Reuters) - Australia's no.3 iron ore miner Fortescue Metals Group is considering a dual listing in Hong Kong to give it access to new sources of capital as it embarks on a massive expansion of capacity, a newspaper reported on Monday.

"We look at all of the options," Fortescue executive director Andrew Forrest was quoted saying in the Australian Financial Review.

Forrest met with Hong Kong Exchanges and Clearing (HKEx) officials in Hong Kong last week, the newspaper said, adding that Fortescue has also considered a listing in Shanghai.

HKEx is pushing to attract Australian resource company listings, a potential new competitive threat for the Australian Securities Exchange , which is looking to merge with Singapore Exchange Ltd .

Last week, Australian mining magnate Clive Palmer said he was delaying a planned $3 billion float of his company Resourcehouse in Hong Kong due to volatile market conditions.

HKEx is reviewing its listing rules to make it easier for resources companies to list.

"I believe as the investors here become more fluent in understanding mining and natural resource companies there is an opportunity for us to potentially make those rules even more flexible," the newspaper quoted an HKEx spokesman saying. (sourced:Reuters)

Over 20 investment banks HSBC, Deutsche, Credit Suisse, Citi and more banks to pitch for Mongolian mine privatization

Tuesday, Feb1, 2011
Over 20 investment banks will next month submit written proposals for the privatisation of Mongolia's Tavan Tolgoi coal mines that could value it at up to $8 billion, The Independent on Jan 30 reported.
The newspaper said bankers from HSBC, Deutsche, Credit Suisse, Citi and Macquarie are among those who will present proposals to list the coal group in either Hong Kong, London or give it a dual listing.
It said presentations will be held between Feb 10 and 15 in the Mongolian capital Ulan Bator, with six banks expected to win roles in the flotation, expected by the first half of next year.
Tavan Tolgoi, which could become one of the world's largest coal mines, is owned by Mongolian government entity Erdenes MGL. (sourced:reuters)