The Russian steelmaker Novolipetsk Steel (NLMK) has announced the modification of the terms of its agreement with Switzerland-based Duferco Group concluded in December 2006 regarding the acquisition of a 50 percent stake in their Luxembourg-based joint venture company Steel Invest & Finance S.A. (SIF).
According to the modified terms of agreement, NLMK has a permanent option to acquire one share in SIF at the original transaction price, and thus raise its stake in the company to the level of a controlling stake.
In addition, effective from December 18, 2010, NLMK will have a perpetual option to buy, and Duferco to sell, all of Duferco's shares in SIF.
The option agreement is in line with NLMK's strategy to better control its strategic assets.