OAO Mechel of Russia's largest coking coal producer won a tender for 55% of OAO Vanino Commercial Sea Port on the Pacific coast outbidding investor Mr Oleg Deripaska's En+ Group.
VTB Capital the sale organizer said that Mechel offered RUB 15.5 billion for the government's stake beating six competitors. The winning bid was 10 times higher than the minimum price.
With USD 8.8 billion of net debt at the end of June, Mechel is one of the most indebted Russian mining companies. This week Mechel completed a USD 1 billion restructuring agreeing on 12 month grace period during which it doesn't have to pay down the loan. The coal producer is seeking to sell assets for funds to pay debt and finance projects in eastern Russia which may benefit from access to the port.
Ms Elena Rollins spokeswoman for En+ said that "We congratulate the winner and will wait for the mandatory offer to buyout minority shareholders as required by the law. Mr Deripaska's company bid RUB 10.6 billion.
BCS Financial Group said that Mechel may need to spend USD 300 million to buy out minorities. The company doesn't plan to comment before the government approves the tender results.