Source: A-Property asks antitrust to buy 100% in Elga coal field

MOSCOW, Jan 28 (PRIME) -- A-Property, a company of co-founder of Russian telecom operator Yota Albert Avdolyan, has asked the Federal Antimonopoly Service to approve an acquisition of 100% in the Elga coal field from Gazprombank and metals and mining group Mechel, a source familiar with the matter told PRIME late on Monday.

The request says that the combined value of A-Property’s assets exceeds 7 billion rubles, while the value of Elga’s companies amounts to over 400 million rubles.

Mechel owns 51% in the companies that develop the Elga coal field, while Gazprombank has 49% which it bought from Mechel for 34.4 billion rubles in 2016. Mechel had the right to buy back the stake in three years, and Gazprombank was allowed to find a new buyer if the right is unused. Mechel said earlier in January that it did not use the right and that it may sell its 51% stake as well.

The Elga coal field is one of the largest fields in the world with estimated reserves of 2.2 billion tonnes. Three companies have been developing the field and constructing infrastructure for more than 10 years – Elga-Doroga, Mechel Trans Vostok, and Elgaugol.

(62.3380 rubles – U.S. $1)

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