The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has agreed to sell its 69.41 percent share in OJSC Tuapse Seaport (TMTP), Black Sea, to Dutch registered Universal Cargo Logistics Holding B.V. (UCLH), for about $254 million.
The divestiture is in line with NLMK's previously announced internal restructuring program, aimed at streamlining asset structure. TMTP was classified as a non-core asset by NLMK's board of directors on 27 February 2006.
Under the terms of the transaction, UCLH will pay Ruble 1.17 per TMTP ordinary share, and will guarantee a long-term agreement for metals freight, signed between NLMK and TMTP.
The transaction is subject to antitrust regulatory approval and is expected to close in two months.
The cash generated from the disposal of NLMK's TMTP stake will be used to repay short-term debt and help fund the company's current investment projects.