Severstal is considering whether to sell shares of its gold-mining unit after the metal’s price rose to a record, said two people familiar with the situation.
Severstal may hold an initial public offering late next year or in early 2011, said the sources, who declined to be identified because the deliberations are private. Severstal in October created a separate firm, Severstal Gold, to manage assets including a controlling stake in High River Gold Mines, one of the people said. The location for a potential IPO hasn’t been chosen, they said.
The gold unit is worth about $1.5 billion, said Barry Ehrlich, an analyst at Alfa Bank.
“Severstal is the only steelmaker I know of that has gold assets on its balance sheet,” said Denis Yevstratenko, an associate director at Prosperity Capital Management. “From the very beginning, Severstal planned to spin off the gold assets some day.”
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.