MOSCOW, May 19 /PRNewswire-FirstCall/ -- Mechel OAO (NYSE: MTL), one ofthe leading Russian mining and metals companies, announces that effectivetoday it has changed its American Depositary Receipts (ADRs) to its ordinaryshare ratio from 1:3 to 1:1.
Mechel's ADRs have been listed on the New York Stock Exchange sinceOctober 29, 2004. Each ADR is issued for one American Depositary Share (ADS).From the date of its listing, each ADS represented three ordinary shares ofMechel OAO. However, beginning today, each ADS will now represent one ordinaryshare of Mechel OAO. To implement the ratio change, two additional ADRs wereissued for each ADR after the close of the market on May 16, 2008. The changewill not affect the holders of Mechel's ordinary shares.
The decision to change the ratio of Mechel's ADRs to its ordinary shareswas adopted by Mechel OAO's Board of Directors with the intention to increaseliquidity of Mechel's ADRs, bringing its price to more customary marketstandards.
Mechel OAO's Chief Financial Officer Stanislav Ploschenko commented on thedecision, 'From the date Mechel's ADRs were listed on the New York StockExchange, the price of each ADR increased from US$21 to a record high ofUS$171 in 2008. Following standard market practice, we decided to increaseliquidity of Mechel's securities and give investors the opportunity to operatein a more customary price range while managing their investment strategies.'
Mechel is one of the leading Russian companies. Its business includesthree segments: mining, steel, and power. Mechel unites producers of coal,iron ore concentrate, nickel, steel, rolled products, hardware, heat andelectric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections orother forward-looking statements regarding future events or the futurefinancial performance of Mechel, as defined in the safe harbor provisions ofthe U.S. Private Securities Litigation Reform Act of 1995. We wish to cautionyou that these statements are only predictions and that actual events orresults may differ materially. We do not intend to update these statements. Werefer you to the documents Mechel files from time to time with the U.S.Securities and Exchange Commission, including our Form 20-F. These documentscontain and identify important factors, including those contained in thesection captioned 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in our Form 20-F, that could cause the actual results todiffer materially from those contained in our projections or forward-lookingstatements, including, among others, the achievement of anticipated levels ofprofitability, growth, cost and synergy of our recent acquisitions, the impactof competitive pricing, the ability to obtain necessary regulatory approvalsand licenses, the impact of developments in the Russian economic, politicaland legal environment, volatility in stock markets or in the price of ourshares or ADRs, financial risk management and the impact of general businessand global economic conditions.
SOURCE Mechel OAO
