MOSCOW, August 1 (RIA Novosti) - The board of Evraz Group S.A. [LSE: EVR], one of Russia's largest steel and mining companies, approved Wednesday a $219 million deal to buy a 24.9% stake in South Africa's Highveld Steel and Vanadium Corporation from Credit Suisse.
Evraz, which already controls 54.1% in Highveld, a global vanadium leader, should exercise the option before October 1.
"Evraz Group S.A. announces that the Board of Directors has approved the purchase of a 24.9% stake in Highveld Steel and Vanadium Corporation from Credit Suisse International for an amount of up to US$219 million, thus exercising an option to increase Evraz's stake in Highveld pursuant to an earlier agreement. The option is to be executed before October 1, 2007," the company said in a press release.
In January 2007, Evraz applied for permission to increase its stake in Highveld to 79%. Evraz' application was granted on condition the company sell some of Highveld's assets, including Vanchem and a 50% stake in a joint venture, South Africa Japan Vanadium.
The deal will enable Evraz Group to turn into a global vanadium producer.
