PJSC Magnitogorsk Iron & Steel Works ("MMK", or "the Group") (MOEX: MAGN; LSE: MMK) announces that on 3 March 2022 MMK received a notice of a change in its shareholder structure.
The corresponding transaction was completed on 28 February 2022, about which the participants in the transaction and the Group provided all necessary notifications to the regulatory authorities.
As a result of the transaction, 79.76% of the shares of PJSC MMK owned by Mintha Holding Limited (hereinafter referred to as the “Seller”) became the property of ALTAIR, LLC (Magnitogorsk, Russian Federation, hereinafter referred to as the “Buyer”). The ultimate beneficiary of both companies is Victor Rashnikov, Chairman of the Board of Directors of PJSC MMK.
The Company recalls that, as of 3 March 2022, MMK’s free float is 20.24%.
MMK emphasises that the restructuring was carried out within the framework of one group of entities. Victor Rashnikov, as the sole participant of the Buyer (ALTAIR, LLC), remains the sole beneficiary of the MMK stock in question.
The Group notes that this transaction was carried out as part of a previously planned change in the ownership structure of MMK shares by moving from the jurisdiction of Cyprus to that of Russia. The decision to restructure was taken in view of the fact that Cyprus has become less attractive in terms of owning and managing Russian investments, as well as in order to use the advantages created in Russia in terms of corporate regulation and the legal and investment rules existing in the Russian Federation that apply to Russian legal entities and private individuals. During the aforesaid transaction, the actual circumstances that arose last week in financial and stock markets were also taken into consideration.