The UK-registered International Steel & Tube Industries Limited (ISTIL) has announced that its subsidiary Metalrussia Investment Limited has agreed to sell Cyprus-registered ISTIL Group Holding Limited, which is the management company of Ukraine-based steel producer Mini Steel Mill ISTIL, of Odessa-based Metalsukraine Corp. Ltd., UAE-based ISTIL Middle East LLC, UK-based ISTIL, USA-based ISTIL Milton, Hong Kong-based MRHK and other related companies, to Cyprus-registered Barycan, which is owned by Russian investment company MirInvest. MirInvest represents the interests of Russian businessman Mr. Vadim Varshavsky.
The transaction is expected to be completed in April 2008.
The parties have also agreed that the present ISTIL management will initially stay on in order to help MirInvest gain a full understanding of ISTIL's business.
ISTIL was formed 1991 and includes steel producing facilities specializing in long steel products, and also seaport facilities.
Rumors regarding ISTIL have been troubling the market since autumn of last year. However, neither ISTIL nor any prospective buyers had confirmed such rumors during that period. Meanwhile, the most recent rumor of ISTIL being sold to Russian steel producer ESTAR Holding was refuted by both sides. Yet, a future connection between ESTAR and ISTIL is quite possible since ESTAR is owned by Mr. Vadim Varshavsky - ISTIL's new owner. However, at the time of the actual purchase of ISTIL, the new owners stated that ISTIL would be a separate business without any connections to ESTAR.