OREANDA-NEWS. On December 21, 2007 as a result of consolidation, Vadim Novinskiy's holding company Smart N.V. (Netherlands) has become an owner of 25% + 1 share in the authorized capital of Metinvest B.V. (Netherlands), reported the press-centre of SCM.

Under the consolidation plan, SMART transferred in November 2007 its 82.46% shareholding in OAO Inguletskiy Ore Mining and Processing (InGOK) to Metinvest (SCM's mining and metals subholding). The parties have also agreed that SMART will transfer to Metinvest its 17,3% shareholding in InGOK encumbered with investment obligations upon permit of the State Property Fund of Ukraine.

In addition, upon receiving clearance from European anti-trust bodies SMART will transfer to Metinvest its 90,18% shareholding in ZAO Makeyevka Steel Plant (MMZ) and 90% shareholding in Promet Steel (Bulgaria). All permits and clearances are expected to be received by late Q1 2008. 

The parties have also reached an agreement in principle for transfer of a SMART-owned shareholding in Yuzhny GOK to Metinvest (transferable shareholding currently does not exceed 25%; the parties have agreed, however, that the shareholding may be increased up to 50% upon receipt of approval from the Antimonopoly Committee of Ukraine).

Information for journalists:
ZAO System Capital Management is Ukraine's largest managing company, which owns and controls assets in the steel and energy-generating industries, as well as telecommunications, banking, insurance, media, retail, and other sectors of economy.

In particular, SCM Group controls Metinvest Holding, DTEK, Farlep-Invest, Optima Telekom, SCM Finance, Syegodnya Multimedia, TRK Ukraina, Ukrainskiy Retail, etc.

90% of ZAO SCM shares are owned by businessman Rinat Akhmetov.

Metinvest Group is the regional leader in mining and metals sector and one of the key players at world’s iron and steel market. The companies of the Group produce 10,5 million tons of steel, more than 38 million tons of iron ore raw materials both satisfying own needs and being the key supplier to other Ukrainian steelmaking companies. Metinvest Holding is the managing company of Metinvest Group. The owners of the managing company are Metinvest B.V. (Netherlands) with 51,15% of share capital and ZAO SCM with 48,85%. Metinvest B.V. is 75% owned by SCM (System Capital Management) Limited (Cyprus), a subsidiary of ZAO SCM, and 25% owned by  Smart N.V.

ZAO Smart-Holding was established in 2006 and manages a number of mining and metal businesses including Makeyevka Steel Plant (Donetsk Region, Ukraine) (before it is transferred to Metinvest), Balaklava Ore Mining (Sevastopol, Ukraine), Promet Steel (Burgas, Bulgaria) (before it is transferred to Metinvest) and Yuzhny GOK (Dnepropetrovsk region, Ukraine). Apart from the mining and metal businesses, Smart-Holding also controls assets in engineering business (Dnepropress, Kherson Shipbuilding Plant), agriculture (Vyeryes Group, Kalita Agriculture Complex, and Kalita Experimental Mixed Feed and Premix Plant), and real estate (Yudzhin LLC).

Smart N.V. (the Netherlands) is a holding company of Vadim Novinskiy's business group.