ZAO Severstal Resources

August 11, 2009 09:22 ET

Severstal Completes Take-Over Bid for High River Gold Mines Ltd.

MOSCOW, RUSSIA and TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Severstal Resources, the mining division of OAO Severstal, announced today that the take-over bid by its subsidiary, Lybica Holding B.V. ("Lybica"), for all of the outstanding common shares of High River Gold Mines Ltd. ("High River") not already owned by Lybica and its affiliates, has expired. A total of 28,897,135 shares were deposited to the offer.

With all of the conditions of the offer having been satisfied or waived, Lybica has instructed the depositary to take up and accept for payment all of the High River common shares tendered to the offer and not already taken up. Lybica will provide the depositary with the funds necessary to make such payment on or before August 13, 2009. High River common shareholders will receive payment for their common shares through their broker or other financial intermediary if the shares were tendered through brokers or other financial intermediaries.

Following the completion of the offer, Severstal will own directly and through affiliates, approximately 400.7 MM common shares, or 61.7 percent, of High River.

"Although the level of acceptances is below that necessary to take High River private, Severstal is pleased to have raised its control in the company to 61.7 percent, and intends to continue to operate High River as a subsidiary entity.", said Alexey Kulichenko, CFO of OAO Severstal.

Morgan Stanley & Company Limited and Torys LLP are acting as the financial and legal advisors to Severstal on this transaction.

Contact Information

  • Severstal Resources
    Sergey Loktionov
    Press Secretary
    +7 495 9810910 ext. 6648
    press@severstalresurs.ru
    or
    Morgan Stanley
    Peter Bacchus
    Managing Director
    +44 (0) 20 7425 4669
    or
    Morgan Stanley
    Vladimir Samarin
    Vice President
    +44 (0) 20 7425 4361
    or
    Fleishman-Hillard Canada Inc. for Severstal
    David Kaiser
    Senior Vice President
    (416) 645-3682
    David.Kaiser@fleishman.ca