Alexander Abramov, chairman of Russian mining and steel producing company Evraz Group, has said that the sale of its stake in Raspadskaya, Russia's second largest coking coal producer, may not go through, if the price does not suit Evraz.
80 percent of Raspadskaya's ordinary shares are held by Corber Enterprises Ltd, an entity which is ultimately owned by Raspadskaya management and Evraz Group on a parity basis. In March this year, Evraz confirmed its intention to sell its stake. The current market price of the 80 percent stake is $4.2 billion, with a total company capitalization of $5.2 billion. According to bank sources, the owners want to sell the 80 percent stake in Raspadskaya for $6 billion. Major Russian mining and steel company Mechel, which has shown an interest in purchasing, is ready to pay just around $2 billion in view of emergency conditions at Raspadskaya following last year's mining accident.