Igor Zyuzin pledges shares as collateral for Mechel

Finance

Publishing Date: 22 Jun 2009 3:03pm GMT
Author: Mining Journal

OAO Mechel, the Russian steel and coal producer, said controlling shareholder Igor Zyuzin pledged almost 38% of his shares as collateral against “certain financings”.

Bellasis Holdings Ltd, Dalewave Ltd and Armolink Ltd, which are Cyprus-registered companies controlled by the billionaire, have pledged a total of 157.9 million Mechel shares, Moscow-based Mechel said in a regulatory filing to the US Securities and Exchange Commission dated June 19.

The company didn’t give details of the financings. There are 417.3 million Mechel shares outstanding, according to data compiled by Bloomberg.

Mr Zyuzin owns 66% of Mechel via the three companies, according to the filing. He gained control of Mechel in 2006 after co-founder and former chief executive Vladimir Iorich left the company and sold his shares. Previously, the two men controlled 42% of Mechel each.

Alexander Tolkach, head of Mechel’s investor relations, couldn’t be immediately reached for comment