NOVOLIPETSK STEEL (NLMK), a leading Russian steel producer, has announced an agreement to sell its 50.08% stake in LIPETSKCOMBANK to BANK ZENIT. So the company’s press service has reported. The deal is worth around $44.0 million. DEUTSCHE BANK provided financial consultations to NLMK. This deal is in line with NLMK’s previously announced internal restructuring plan, aimed at company asset optimization. In 2006, LIPETSKCOMBANK was classified as non-core asset according to a decision of NLMK’s Board of Directors. The sides are planning to close the deal by the end of 3Q2007. LIPETSKCOMBANK provides general banking services for corporate and retail customers in accordance with its general license from the Central Bank of Russia, a license for foreign currency operations and a license for brokerage activity. It is headquartered in Lipetsk. As of January 1, 2007, the capital base of LIPETSKCOMBANK was approximately $44.0m. The net income for 2006 amounted to $6.5m.
Source: WWW.NOVECON.RU, June 22, 2007
