Afarak shares slump after deal to buy LLR

Afarak SE

12/05/2023 08:47

** Shares in Afarak  AFAGR.HE  plummet 23% after the
Finland-based steel company signed a combination agreement with 
Austria-based mining and processing company LL Resources (LLR) 
    ** Afarak said it would issue 140 million new shares to
shareholders of LLR, corresponding to about EUR 59.5 million
($65.50 million), after which LLR would be fully-owned by Afarak
    ** LLR operates globally, with focus on ferro-alloys, steel
products, scrap, coke, coal, bitumen, fertilizer and other
materials
    ** LLR's net debt in the financial statement of 2022
amounted to 48.2 million euros according to the Austrian
Accounting Standards, Afarak said    
    ** The Finnish steel company decided to keep its 2023
guidance intact, but added that the transaction, estimated to be
completed in Q3 2023, would have a financial impact on the
company
    ** Afarak stock is on track for its worst day in a year
     


($1 = 0.9084 euros)

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))