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Russian tycoon sold plant in Dnipro

Dneprometiz has apparently been sold to the Germans.

Russian tycoon sold plant in Dnipro

Severstal Group, which is controlled by one of the richest Russian businessman, Aleksey Mordashov, got rid of one of Ukrainian assets, the Dniprometiz plant.

Severstal said in a statement that its subsidiary Cambay Services Ltd has completed the sale of 100% of the shares of Dealzone Holding Ltd that owns 98.6% stake in Ukrainian PJSC Dniprometiz. Severstal did not elaborate on who is the buyer and the terms of the transaction.

In 2014, Severstal stated plans to sell Dniprometiz to a German company.

Dniprometiz shows good utilization of the capacity and stable financial performance but is not operationally bound with Severstal's Russian companies, reads the statement.

Severstal has acquired 60% stake in Dniprometiz from Serhiy Tigipko's TAS group for $ 50 mn in 2006. Subsequently, the stake of the Russian company in Ukrainian enterprise grew to 98.6%.

Dniprometiz is one of the largest enterprises in Ukraine in the industry but it is heavily dependent on its raw material suppliers - ArcelorMittal Kryviy Rih by Lakshmi Mittal and Rinat Akhmetov's Metinvest.

Severstal owns Ukrainian company - metal trader Severstal-Ukraine.

Ukraine has imposed sanctions against Mordashov.