RSS
Mechel Targoviste wants credits of 100 million euro together with three firms from the group
Mechel Targoviste steel plant intends to contract two credits of 50 million euro each, from ING Bank and Unicredit Tiriac Bank, together with three companies from the group, Mediafax informs.
The three companies are Laminorul, Ductic Steel and Mechel Campia Turzii and shareholders are summoned for 22 July to discuss the proposal.
The funds will be used to finance work capital and potential engagements. Targoviste steel plant had incomes of 322.5 million lei (76.3 million euro) in the first quarter, 2.2 times more than the level of the similar period in 2010 which was 143.4 million lei, and had losses two times lower – 12.6 million lei.
Targoviste steel plant estimates that losses of 17.27 million lei will be reported this year, about nine times below the level reported for the previous year of 155.16 million lei.
According to the latest reports, Mechel group owns 86.6% of Targoviste plant shares, AVAS has 4.04% while the rest of 9.35% represents portfolios of other shareholders. The latest transaction with company bonds was made last week at the ;price of 1.15 lei for which the company has a capitalization of 79.17 million lei.
The Russian group Mechel came into the Romanian market in 2002 ad owns the plants Mechel Campia Turzii, Mechel Targoviste, Ductil Steel Otelu Rosu, Ductil Steel Buzau, Laminorul Braila and Mechel Reparatii Targoviste.