Novolipetsk Iron & Steel Works does worse after buying Maxi Group
The net profit made by Novolipetsk Iron & Steel Works in the first quarter of 2008 (calculated on the basis of US GAAP) reached $617.7m, which is 35% better than in the first quarter of 2007, the spokesperson for the enterprise reports.
At the same time, the company’ EBITDA margin went down from 43% to 47% in January-March 2008. Experts believe this has to do with Novolipetsk Iron & Steel Works acquiring Maxi Group’s 50% plus one share in December 2007; this cost the former some $600m.
Maxi Group then admitted that the company was on the verge of collapse, as most banks refused to let them have their earlier loans refinanced. At the moment of acquisition, Maxi Group owed these banks 34 billion RUR.
At the same time, the company’ EBITDA margin went down from 43% to 47% in January-March 2008. Experts believe this has to do with Novolipetsk Iron & Steel Works acquiring Maxi Group’s 50% plus one share in December 2007; this cost the former some $600m.
Maxi Group then admitted that the company was on the verge of collapse, as most banks refused to let them have their earlier loans refinanced. At the moment of acquisition, Maxi Group owed these banks 34 billion RUR.
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