MMK Group increases its stake in the coal company Belon to 95 per cent
MMK Group (LSE: MMK) has acquired an additional 12.77% of shares in OJSC Belon (“Belon”) in an off-market transaction. Following the deal, MMK Group now holds a stake of over 95% in the coal company.
This transaction enables MMK Group to consolidate a larger stake in Belon and to satisfy the majority of minority shareholders in their bids to redeem their shares in the company.
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OJSC Belon is part of MMK Group. The company extracts and processes coking coal and produces coal concentrate. Belon is a strategic supplier of raw materials to MMK.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2012 the company produced 13 million tonnes of crude steel and 11.9 million tonnes of commercial steel products.