MOSCOW (Reuters) - TMK, Russia’s largest maker of steel pipes for the oil and gas industry, is considering different options for its U.S. subsidiary IPSCO but intends to keep a controlling stake in the firm, it said on Tuesday.
On Monday, TMK IPSCO told Reuters that it did not plan to sell any assets and would be ready to consider alliances with the “global metal market players” in future.
“While no decision regarding any specific action related to TMK IPSCO has been made, our previously disclosed exploration of strategic alternatives remains ongoing,” TMK, controlled by Russian businessman Dmitry Pumpyansky, told Reuters on Tuesday.
Asked whether TMK was considering an initial public share offering of IPSCO or selling the stake in IPSCO, a TMK representative said: “While the company considers different options, it is not currently planning to sell either production assets or a controlling stake in TMK IPSCO.”
On Oct. 25, TMK asked holders of its Eurobond to approve the release of the IPSCO division from obligations under a guarantee as it would “allow TMK the flexibility to pursue the optimal strategy for the Group to maximize the value of its holding in IPSCO Tubulars Inc.”
According to VTB Capital, TMK paid around $1.7 billion for the IPSCO assets in 2008-2009.
Reporting by Natalia Shurmina and Polina Devitt; writing by Polina Devitt; editing by Keith Weir