MOSCOW, Dec. 18, 2012 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces the disposal of 100% of the shares of Toplofikatsia Rousse EAD (TPP Rousse, Bulgaria). Mechel OAO announces that it has signed an agreement for the disposal of 100% of Toplofikatsia Rousse EAD to Toplofikatsia Pleven, a privately-held Bulgarian power company. The disposal is valued at approximately 27.7 million euro based on the asset's equity value. Toplofikatsia Pleven will assume all of TPP Rousse's investment obligations. Additionally, the buyer will assume the accounts payable to Mechel Carbon for historical coal deliveries in amount of 18.8 million US dollars. One of the deal's requirements is obtaining the appropriate permission from Bulgaria's Commission on Protection of Competition. VTB Capital and UniCredit Bank acted as financial advisors and CMS as legal advisor to Mechel OAO in this transaction. The disposal of TPP Rousse is fully aligned with Mechel OAO's revised strategy aimed at development of its core businesses — consolidating the group's leading position as a metallurgical coal producer, strengthening its positions in steel products for construction and increasing its share on the markets for high value-added steel products. The transaction was made in line with the program for restructuring the group's assets as earlier approved by Mechel OAO's Board of Directors. In 2011 TPP Rousse generated 388 GWh of electricity and 236 Gcal of heat power, which resulted in 44.1 million euro in revenues and 4.2 million euro in EBITDA. As of 31 July 2012 TPP Rousse had some 300 employees. Commenting on the event, Stanislav Ploschenko, Mechel OAO's Chief Financial Officer, noted: "The transaction is a first step in implementing Mechel OAO's renewed strategy focusing on its core business segments. All proceeds from the transaction will be used towards the repayment of the Group's debt. On the whole, as a result of this transaction, Mechel's leverage will be reduced by approximately 55.2 million US dollars*."