Source: Rashnikov sells 3% in MMK for 36.7 rbl per security

MOSCOW, Sep 6 (PRIME) -- Mintha Holding Limited of businessman Viktor Rashnikov has sold a 3% interest in Russia’s Magnitogorsk Iron and Steel Works (MMK) on the market for about 36.7 rubles per security, a financial source told PRIME on Wednesday.

“The bidding book was open yesterday and the placement of the entire stake was successful. Many Russian brokers bid in the book but received no allocation at all. The price was about 36.7 rubles,” the source said.

According to documents seen by PRIME late Tuesday, after the sale, the company’s free float can rise to 15.7% and the stake of Rashnikov can fall to 84.3%.

Goldman Sachs is the sole organizer of the placement and will receive no income from it.

MMK said earlier that it planned to raise free float to 15.5% from 12.7% after its capitalization reaches U.S. $7 billion, or $8.15 per global depositary receipt, to be listed with the MSCI Russia.

(57.8503 rubles – U.S. $1)

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