SCM GROUP PUBLIC REPORT 2011

SCM Group corporate transformation program
2011
Mining and metals
Metinvest B.V. jointly with the two other investors purchased
a 50% share in the metals business of Industrial Group,
which manages Zaporozhstal and also obtained an option to
purchase the remaining 50% share in the stated company.
Makeyevka Steel Plant changed its status to the branch
of the Yenakiyevo Steel Plant (Metinvest).
The integration of Ilyich Steel Plant in Mariupol into Metinvest
Group was completed, and Clarendale Limited (Cyprus),
with Vladimir Boyko being the end beneficiary, became one
of Metinvest Group’s shareholders. As a result, Metinvest's
ownership structure changed to the following: SCM Group
(71.25%), Smart Group (23.75%), Clarendale Limited
(5%).
Energy
DTEK and the Ministry of Energy and Coal Industry of Ukraine
signed a 49-year concession lease for Rovenkyanthracite and
Sverdlovanthracite, the state-owned mining enterprises.
The stated agreements were signed as a result of the open
concession tenders, which were conducted in Ukraine for
the first time. The property of the state coal enterprises will be
managed by DTEK Rovenkyanthracite LLC and DTEK Sverdlovanthracite
LLC.
DTEK won the tender of the State Property Fund of Ukraine
for the sale of 25% share in Kievenergo, having proposed
a price of $56.3m. As a result, DTEK acquired a controlling
71.82% share in the company.
22
Financial services
SCM completed the purchase of the 100% share in Renaissance
Capital Bank (Renaissance Credit TM). The bank will
continue its development in the consumer and point-of-sale
loan segments.
The operational integration of First Ukrainian International
Bank and Dongorbank was completed. The integration allowed
First Ukrainian International Bank to expand its regional
and ATM networks. As a result, the integrated bank
is in the top–10 largest financial institutions in the country,
based on its financial indicators.
Real estate
Stolichny TSUM LLC (ESTA Group) completed the purchase
of Kievsky TSUM Trading House LLC and M-Service LLC.
Completion of the transaction will enable ESTA Group to proceed
with the Kiev Central Univermag Shopping Mall reconstruction
project.
ESTA Holding purchased a 50% share in the second line
of Leonardo Business Center (Kiev).
Media
SCM purchased a 9% share in Dnepropetrovsk Television
Service, having increased its stake in the stated company to
67.99%. Dnepropetrosk Television Service (Channel 34) is
a local air and cable broadcasting company, covering the city
of Dnepropetrovsk and the adjacent regions.