Russia's Mechel to Sell Heating Utility in Bulgaria's Ruse Russian steel and mining giant Mechel OAO plans to sell Toplokifatsiya Ruse, the heating utility in the northeastern Bulgarian Danube city of Ruse. According to Russian business daily Vedomosti, Mechel OAO is seeking buyers of assets in Europe and the countries of the former Soviet Union. Mechel OAO has said it wants to sell non-core and unprofitable assets to finance debt repayment. Following a September 21 meeting of Mechel OAO's Board of Directors, the company published Tuesday a list of assets earmarked for sale due to their inconsistency with the new development strategy. Mechel OAO announced it would divest of the following assets: enterprises that make up Mechel's Eastern European Steel Division S.R.L., Donetsk Electrometallurgical Plant PJSC (Ukraine), Invicta Merchant Bar Ltd. (UK), UAB "Mechel Nemunas" (Lithuania), Mechel Service Global B.V. (except Mechel Service OOO (Russia)), Voskhod-Chrome LLP (Kazakhstan), Voskhod-Oriel LLP (Kazakhstan), Tikhvin Ferroalloy Plant OOO (Russia), Southern Urals Nickel Plant OAO (Russia), Kuzbass Power Sales Company OAO (Russia), Toplofikatsia Rousse EAD (Bulgaria). The Board of Directors of the Russian steel and mining giant also recommended evaluating the possibility of a potential divestment of a minority stake of up to 25% in Mechel Mining OAO to a strategic partner in order to speed up the implementation of the mining division's priority project, the development of the Elga coal deposit.
Source: Capital (27.09.2012)

Energy tycoon Hristo Kovachki, who was investigated on tax evasion charges two years ago, is the real buyer of the heating utility in the Bulgarian Danube city of Ruse, according to reports. Russian steel and mining giant Mechel announced on Tuesday that it has successfully concluded the sale of the heating utility in the Bulgarian Danube city of Ruse in a bid to slash its debt load. Mechel has signed an agreement for the disposal of 100% of Toplofikatsia Russe EAD to Toplofikatsia Pleven, a privately-held Bulgarian power company. The deal price has been set at approximately EUR 27.7 M based on the asset's equity value. In May 2011 Hristo Kovachki was allowed to sell two heating utilities to offshore companies registered in the Seychelles. The heating utility in the northern city of Pleven was acquired by Cornworth Ltd, while the heating utility in the Black Sea city of Burgas – by Worthforth Ltd. The precise ownership of the offshore companies and the price of the deals was unclear. Two years ago, Kovachki was charged with tax crimes amounting to BGN 16 M for the 2005-2008 period from four of his businesses, only to be acquitted by Sofia Appellate Court in May 2012. Kovachki, whose party failed to win seats in the parliamentary elections in the summer of 2009, has diverse business interests, ranging from manufacturing to banking and from energy to retail. Believed to be one of the richest men in the Balkans, he owns the Thermal Plants "Maritsa-Iztok 3" in Dimitrovgrad and "Bobov Dol", several mines, as well as the heating utilities in Vratsa, Burgas, Veliko Tarnovo and Pleven, the grocery chain "Evropa" and the "Atomenergoremont" company. According to data by the National Revenues Agency, 37 companies, linked to Kovachki, owe to the budget BGN 100 M in taxes and social security payments.
Source: Capital (19.12.2012)

Russia’s Mechel sells Rousse Central Heating Utility for ˆ27.7 mln The Russian steel and mining giant Mechel announced on Wednesday it was selling all its shares in the Rousse Central Heating Utility JSC for ˆ27.7 mln to the Pleven Central Heating Utility, privately owned by businessman Hristo Kovachki. The new owner will be fulfilling the long-term contracts for the supply of coal to Mechel Carbon, worth ˆ14.3 mln. The transaction should be authorised by the Commission for Protection of Competition. In 2011, the Rousse Central Heating Utility JSC generated 388 GWh of electricity and 236 Gcal of heating energy, evaluated at ˆ44.1 mln in revenues. The company had approximately 300 employees as of July 31, 2012.
Source: Class (20.12.2012)