MMK to plan a 7 year investment program costing $5.2 bln

Magnitogorsk Iron and Steel Works (MMK) plans to use the proceeds from its additional share issue in London and Russia to finance the company's 2007-2013 investment program worth $5.2bn, a source close to the banking sphere told RBC today. Hence, MMK will float 30 percent of its additional shares in Russia and 70 percent on the London Stock Exchange (LSE) in the form of global depositary receipts (GDRs).
According to the company's investment memorandum, MMK plans to spend $782m in 2007, $954m in 2008, $884m in 2009, $773m in 2010, $500m in 2011, and 382m in 2012.