GREY:HRIVF - Post by User
Comment by
bart_dcon May 28, 2010 3:03pm
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Post# 17141098
RE: FTSE
RE: FTSESerge,
the shares of HRG won't be listed in London at all.
It is the stake Severstal holds in HRG (the 68.8% of outstanding shares) that will all be put together in one entity, Severstal Gold. It is this entity that is currently 100% owned by Severstahl, that will be brought to the market in London.
Severstal will most likely float up to 49% of the Severstal Gold entity to keep control over the assets and be able to consolidate them in their books.
Severstal now needs HRG to rise towards fair value soon because they will try to sell their Severstal Gold entity at the highest possible price they can. And as long as HRG, which makes up around half of Severstahl Gold, stays this low and far below fair value, Severstal won't be able to maximize their profit when they IPO in London.
If you need additional informatio, please let me know.
Best regards,
Bart