Russian mining and steel group Mechel has announced that it has signed an agreement for the disposal of 100 percent of its Bulgarian combined heat and power plant Toplofikatsia Rousse EAD to Toplofikatsia Pleven, a privately-held Bulgarian power company. The disposal is valued at approximately €27.7 million based on the asset’s equity value.
VTB Capital and UniCredit Bank acted as financial advisors and CMS acted as legal advisor to Mechel in this transaction.
The disposal of TPP Rousse is fully aligned with Mechel’s revised strategy aimed at development of its core businesses - consolidating the group’s leading position as a metallurgical coal producer, strengthening its positions in steel products for construction, and increasing its share in the markets for high value-added steel products.
As a result of this transaction, Mechel’s leverage will be reduced by approximately $55.2 million.