Moscow, Russia — June 18, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the decision of the company’s Board of Directors to authorize the buy back of up to $100 million of ADRs representing Mechel OAO’s common shares.
These repurchases will be made in open market or privately negotiated transactions from time to time, subject to market conditions, applicable legal requirements and other factors. This plan does not obligate Mechel to acquire any particular number of ADRs and the plan may be suspended at any time at the company’s discretion. The buyback will be done on behalf of Skyblock Limited, Mechel OAO’s 100-percent owned subsidiary.
“The Board of Directors has a diligent approach toward appraising capital structure and studying ways to efficiently use cash flows to increase the company’s shareholder value. The buyback decision reflects the Board’s confidence that the fundamental value of our company’s shares is higher, and meets the interests of all of its shareholders”, Mechel OAO’s Chief Financial Officer Stanislav Ploschenko noted.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.