Russia’s Mechel owner increases shares in collateral to 59.43%

MOSCOW, Dec 2 (PRIME) -- Igor Zyuzin, major owner of Russian mining and metals group Mechel, has increased the company's stake collateralized against his personal credit to 59.43% from 50.02%, the company said in disclosure documents seen by PRIME on November 30.

Zyuzin, whose total stake in the company amounts to 67.42%, has the right to vote on the pledged shares and receive dividends.

Mechel, which has recently received a waiver on an U.S. $ 1 billion loan out of a $9.6 billion debt, declined to comment. Investcafe analyst Andrei Shenk said that Zyuzin had increased the volume of pledged shares due to a margin call on the collateral after the shares plunged

“If the shares continue falling, there may be another margin call and another increase of the pledged stake. If the shareholder does not have enough shares to pledge, the bank will have the right to take the pledged shares,” Shenk said.

Zyuzin directly controls only 0.05% in Mechel, while the rest is an indirect holding though Cyprus-based companies Calridge, Bellasis, Armolink, Actiondeal and Cyberwood.

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