Mechel May Become the Owner of Donetsk Electric Steel Mill
By report of Steel Business Briefing newspaper, Mechel may become the owner of DEMZ (Donetsk Electric Steel Mill, Ukraine), which came under control of Alfa-Bank when Estar Group failed to pay one of credit. The capacity is 1 M tpy of steel. At Mechel the information is disclaimed.
The news are positive for Mechel, even if it gain only the management like at four other Russian assets of Estar Group.
According to our estimate, fair price of Mechel share is $32.81, recommendation is to “Buy”.
Saturday, February 27, 2010
Ferrous metals
Source:
AK&M
