BNS − AS Silmet Grupp has repurchased from the Swiss company Zimal S.A. 50 percent of the shares plus one share in AS Silmet and now owns 90 percent of the Sillamae, northeast Estonia based rare earth metals producer, Silmet Grupp said.
Silmet Grupp sold the majority holding in Silmet in late 2005 for 12 million US dollars.
A tenth of the shares still belong to the Austrian company Treibacher Industrie AG.
A few months ago shareholders of Zimal S.A. sold their holdings in the Silvinit potassium fertilizer plant, in the Solikamsk magnesium plant and in the Lovozero loparite mine, all situated in Russia. By this the owners of Zimal ended their activity in the production of fertilizers and metals. Because of this Silmet Grupp made to Zimal a proposal for share repurchase concerning Silmet, which Zimal accepted.
Cooperation with and supply of raw materials of rare earth metals from the Solikamsk magnesium plant to Silmet will continue on the basis of the agreements concluded, Silmet Grupp told BNS.
Silmet posted a profit of 36 million kroons (EUR 2.3 mln) for the first nine months of this year.
Silmet Grupp is controlled by Tiit Vahi, former prime minister of Estonia.
(EUR 1 = EEK 15.65)