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* 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 largeststeelmaker, is to take a majority stake in coal minerRaspadskaya in an $800 million cash and share
dealdesigned to give it more control over the supply of coking coal,a key ingredient in steelmaking. Evraz, part-owned by billionaire Chelsea soccer club ownerRoman Abramovich, is increasing
its stake from 41 percent to 82percent, through a deal which sees it buy the shares fromRaspadskaya's management. Evraz did not specify the whole value of the deal but saidit will pay
about $202 million in cash and the rest in newshares and warrants, which would represent 11.06 percent ofEvraz current share capital. At current prices, that wouldamount to roughly $800
million. It will issue 132.7 million new shares representing 9.9percent of its share capital and warrants to subscribe for 33.9million new shares representing 2.53 percent of its
sharecapital. Completion of the deal is expected in the fourth quarter. The deal will see Evraz become the largest producer ofcoking coal in Russia, Alexander Frolov, Evraz's chief
executivesaid. Mechel is currently the largest producer of cokingcoal in Russia. Boris Krasnojenov, an analyst from Renaissance Capital,estimated that Evraz is paying a premium to the market
value of5-6-percent. The company's London-listed shares fell over 4 percent inearly trade and were down 2.8 percent at 0800 GMT at 240.5pence, underperforming its peers. Evraz's
shares have fallen 35 percent during the last twelvemonths, according to Reuters data, valuing it at around $5billion at the market's close on Wednesday. Raspadskaya's market value
was about about $2 billion onWednesday. After Evraz's statement, Raspadskaya shares rose 3.44percent in Moscow by 0700 GMT. The remaining 18 percent of Raspadskaya's shares will
staylisted on the Russian Stock Exchange and Russia's MICEX-RTS. (Reporting by Polina Devitt and Andrey Kuzmin; editing by MeganDavies) (([email protected])(+7 495 775 12
42)(ReutersMessaging: [email protected])) Keywords: RUSSIA EVRAZ/RASPADSKAYA