Source: Gazprombank to sell 34% in Elga to Mechel for 30 bln rbl

MOSCOW, Oct 3 (PRIME) -- Russia’s Gazprombank plans to sell a 34% stake in the Elga coal project to metals and mining group Mechel for slightly over 30 billion rubles, a source familiar with the situation told PRIME on Thursday.

He also said the deal should be closed by January 20, 2020.

On Monday, a spokesman for Mechel said that the company accepted Gazprombank’s offer and would buy 34% in the project from the bank.

Mechel holds 51% in Elgaugol, the holder of the license to develop the Elga field. Gazprombank bought 49% in the company from Mechel in 2016 in the framework of restructuring of a 34.3 billion ruble debt.

Gazprombank said in August that it had received an offer of purchase of a 49% stake in the Elga coal deposit from a company. An official of the Federal Antimonopoly Service said that an application for clearance of the deal was sent by A-Property, a company of co-founder of telecom operator Yota Albert Avdolyan, while Mechel had the right to buy out the stake of the bank in a month.

(65.4399 rubles – U.S. $1)

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