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. Last Updated: 07/27/2016

Evraz Says It Will Purchase Remaining Highveld Shares

Steelmaker Evraz Group offered Monday to buy all the shares in South Africa's Highveld Steel and Vanadium it does not already own.

Evraz, which owns 54.1 percent of Highveld, said it was offering $11.4 per share, 31 percent more than the price it paid to Anglo American for its current stake.

"We believe that this price reflects the full value of the business of Highveld," Evraz chairman and chief executive Alexander Frolov said in a statement.

In a statement, Highveld said its board was in the process of responding to the offer, which should be released in two weeks. "Shareholders are therefore advised to continue to exercise caution until a further announcement is made," it said.

The offer is valid until July 4 and Evraz said it had already obtained all regulatory approvals.

Evraz also retains an option to buy a stake of 24.9 percent in Highveld held by Credit Suisse.

After acquiring Highveld, Evraz became the world's largest supplier of vanadium, which is used in the production of special and alloy steels. Highveld is South Africa's second-largest steel maker after Mittal.

The main shareholders in Evraz are billionaires Frolov and Alexander Abramov. The Millhouse investment vehicle of Roman Abramovich also owns a 41 percent stake.