In a bid to join the FTSE100, Evraz, the £5bn Russian steelmaker part-owned by Roman Abramovich, is set to shift base from Luxemburg to London.
The company plans to list on the London Stock Exchange without raising any new money. A share exchange offer would be introduced, in which the current investors will receive nine new shares for each existing share. The company has pledged to make two dividend payments per year.
In 2006, Abramovich bought 42 per cent of Evraz through his investment company, Lanebrook. The company now owns 72.25 per cent of Evraz.
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Despite UK’s strict corporate goverenance standards, the company wants to come to the capital to access its liquid markets. It has already expanded its board to include four independent directors, including Sir Michael Peat, founder of KPMG.
Giacomo Baizini, chief financial officer, said that the share swap would help broaden Evraz’s appeal to international investors and boost its liquidity.
Speaking to the FT, Baizini said: “We are now in a more solid position to present ourselves to a broader market with a platform for growth.”
Evraz is expected to start trading early next month, after a 10-day investor roadshow.
Evraz is the third Russian steelmaker to seek a London listing. Polymetal, a Russian gold and silver producer, and Polyus Gold, Russia’s biggest gold producer are also eying a spot on the FTSE 100.