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UPDATE 1-Russia's Mechel launches pref share offering
April 27, 2010 / 6:43 AM / 7 years ago

UPDATE 1-Russia's Mechel launches pref share offering

* Justice family could raise more than $524 million

* Listing price range set at $21.00-$27.60 per pref share

* Preferred ADS range set at $10.50-$13.80 per pref ADS (Adds detail)

MOSCOW, April 27 (Reuters) - Russian coking coal and steel producer Mechel (MTL.N) on Tuesday launched a public offering of preferred shares that could allow one of its shareholders to raise more than $524 million.

The Justice family shareholders will offer up to 49.95 million preferred American Depository Shares (ADS) representing 24.98 million preferred shares at a price range of between $10.50-$13.80 per preferred ADS.

Mechel acquired West Virginia, U.S.-based Bluestone Coal from the Justice family last April for $436 million and 83.3 million preferred shares. [ID:nLM122811]

The Justice family cannot sell the shares until they are listed on a stock exchange.

Morgan Stanley and Renaissance Securities are acting as joint bookrunners for the sale, which will raise between $524-$689 million if it is priced between the announced range.

Mechel also has 55.5 million preferred shares but the statement did not mention any plans to sell them. (Reporting by Alfred Kueppers; Editing by Rupert Winchester)

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