UPDATE 1-Russia's Evraz takes control of coal miner Raspadskaya
* To increase stake in Raspadskaya from 42 pct to 82 pct
* To pay in cash, new shares and warrants, total of around $800 million
* Deal valued at $202 mln of cash and 11 pct of Evraz shares
(Adds details, quotes, background)
MOSCOW, Oct 4 (Reuters) - Evraz , Russia's largest steelmaker, is to take a majority stake in coal miner Raspadskaya in an $800 million cash and share deal designed to give it more control over the supply of coking coal, a key ingredient in steelmaking.
Evraz, part-owned by billionaire Chelsea soccer club owner Roman Abramovich, is increasing its stake from 41 percent to 82 percent, through a deal which sees it buy the shares from Raspadskaya's management.
Evraz did not specify the whole value of the deal but said it will pay about $202 million in cash and the rest in new shares and warrants, which would represent 11.06 percent of Evraz current share capital. At current prices, that would amount to roughly $800 million.
It will issue 132.7 million new shares representing 9.9 percent of its share capital and warrants to subscribe for 33.9 million new shares representing 2.53 percent of its share capital.
Completion of the deal is expected in the fourth quarter.
The deal will see Evraz become the largest producer of coking coal in Russia, Alexander Frolov, Evraz's chief executive said. Mechel is currently the largest producer of coking coal in Russia.
Boris Krasnojenov, an analyst from Renaissance Capital, estimated that Evraz is paying a premium to the market value of 5-6-percent.
The company's London-listed shares fell over 4 percent in early trade and were down 2.8 percent at 0800 GMT at 240.5 pence, underperforming its peers.
Evraz's shares have fallen 35 percent during the last twelve months, according to Reuters data, valuing it at around $5 billion at the market's close on Wednesday.
Raspadskaya's market value was about about $2 billion on Wednesday. After Evraz's statement, Raspadskaya shares rose 3.44 percent in Moscow by 0700 GMT.
The remaining 18 percent of Raspadskaya's shares will stay listed on the Russian Stock Exchange and Russia's MICEX-RTS.
(Reporting by Polina Devitt and Andrey Kuzmin; editing by Megan Davies)
Keywords: RUSSIA EVRAZ/RASPADSKAYA