Page 75 - UKRRptMay21

9.2.11 Metallurgy & mining corporate news
● Metinvest
Ukraine’s leading metallurgy company Metinvest has improved its environmental, social and governance (ESG) rating assigned by Sustainalytics, a leading global provider of ESG research, ratings and data, the company said in a press release on April 5. The group’s ESG Risk Rating decreased to 31.7, down from the 32.0 assigned in June 2020. The score measures unmanaged ESG risk on an absolute scale of 0-100, with a lower figure indicating less risk. Regarding environmental management, Sustainalytics noted Metinvest’s responsible approach to air emissions, effluents, waste issues and use of resources. In relation to the social component, the agency cited Metinvest’s strong health and safety management system, contractor safety programmes and human capital practices. Metinvest’s risk management in all categories for governance was also assessed as strong, due to its high standards of business ethics, efficient anti-bribery and anti-corruption programmes, and product governance. In Sustainalytics’ ranking of global steelmakers, Metinvest maintained its position in the top 10.
Metinvest to receive $275mn in dividends from JV. Southern Iron Ore, a joint venture of Ukraine’s largest steel producer Metinvest (METINV), plans to declare UAH19.7bn ($705mn) in dividends, according to the agenda of its EGM to be held on April 21. About $671mn, or 95% of the total amount to be declared is part of its 2020 net profit, the company said in the agenda published on Apr. 5, with the remainder being part of net profit for 2017-2019. The shareholders attending the EGM are asked to delegate to the company’s supervisory board the rights to determine the record date and the time period for the dividend payment. Other items of the agenda include approving Southern Iron Ore’s 2020 annual accounts and report. Recall, on Feb. 17 Southern Iron Ore announced that another EGM, to be held on March 5, might decide on declaring $302mn in dividends, as all being part of its 2019 net profit.
Metinvest offers Pokrovske Coal shareholders to sell their shares. Shareholders of private joint stock company Pokrovske Coal on April 2 were offered to sell their stakes at UAH 12.8 (USD 0.46) per share to Metinvest B.V., the top holding company of Metinvest (METINV), Ukraine's largest steelmaker. According to an April 5 regulatory filing by Pokrovske Coal, the sell-out offer per-share price was approved by the coking coal miner’s board on March 31 as the higher of two values: an appraised value (UAH 12.1) and the highest direct purchase price by Metinvest B.V. during the last 12 months (UAH 12.8). Metinvest B.V. owns 67.3% of Pokrovske Coal, including a 9.99% direct ownership stake, according to the filing. Recall, in March Metinvest disclosed that it had increased its effective interest in the so-called Pokrovske coal business, which includes PrJSC Pokrovske Coal, to a controlling stake. The only other significant asset of Pokrovske coal business is Svyato-Varvarynska Enrichment Plant LLC, in which PrJSC Pokrovske Coal owns 55%. The total value of Pokrovske Coal’s equity (848.5 mln shares outstanding) amounts to USD 389 mln at the sell-out offer price, according to Concorde Capital calculations. Pokrovske coal business is valued at USD 747 mln, according to Concorde Capital calculations that use the amount, USD 185 mln, Metinvest paid in 2018 for a 24.77% stake (the revised data from Metinvest’s 2019
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