OREANDA-NEWS.   OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), (‘Severstal’, the ‘Company’), one of the world’s leading vertically integrated steel and steel-related mining companies, announces it has entered into separate definitive transaction agreements to sell its Severstal Columbus, LLC and Severstal Dearborn, LLC subsidiaries, collectively known as Severstal North America, to Steel Dynamics, Inc. and AK Steel Corporation, respectively, for a total cash consideration of USD 2 325 million.

The work to prepare and sign the agreements to sell the assets was launched in the end of 2013 and has now been successfully finalized. The transaction concludes the review of strategic options in relation to Severstal North America previously announced by Severstal.

“The sale of Columbus and Dearborn unlocks substantial value to Severstal’s shareholders,” said Alexey Mordashov, Chief Executive Officer of OAO Severstal. “On behalf of Severstal’s management I would like to express gratitude to the whole team at Dearborn and Columbus for their input in making Severstal North America one of the most efficient steel producers in the USA. We wish our colleagues further success in the development of the business,” he commented.

Completion of the sale is subject to customary closing conditions, including expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period. The closing of the transaction is not subject to any financing conditions and is expected to be realized by year-end 2014.

Evercore and Citigroup acted as financial advisors to OAO Severstal. Skadden, Arps, Slate, Meagher & Flom LLP acted as OAO Severstal’s legal advisor.