The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has completed the sale of its 69.41 percent stake in OJSC Tuapse Seaport (TMTP), located on Russia's Black Sea coast, to Dutch-registered Universal Cargo Logistics Holding B.V. (UCLH) for a total of Ruble 7.105 billion (approx $254 million), or Ruble 1.17 per ordinary share of TMTP.
Accordingly, the cash generated from the sale of its stake in TMTP will be used by NMLK to repay its short-term debt and to fund its current investment projects.
Under the scope of the agreement, UCLH is to make an offer to NLMK minority shareholders to acquire the TMTP stake at Ruble 1.17 per share on a pro rata basis in accordance with their NLMK shareholding as of the date when UCHL acquires NLMK's stake in TMTP. In this way, NLMK shareholders will be able to maintain their interest in TMTP through UCLH.
In addition, UCHL also intends to purchase TMTP shares from TMTP's private minority shareholders, likewise at Ruble 1.17 per share.