PAO Trubnaya Metallurgicheskaya Kompaniya : TMK announces reorganization of Volzhsky Pipe Plant and Chelpipe

04.02.2022 TMK announces reorganization of Volzhsky Pipe Plant and Chelpipe

TMK ("TMK", "the Group"), one of the world's leading producers of tubular products for the oil and gas industry, announces its decision to reorganize its wholly owned subsidiaries Volzhsky Pipe Plant (VTZ) and Chelpipe.

VTZ's pipeline solutions business (VTZ Pipeline Solutions) and Chelpipe's pipeline solutions business (Chelpipe Pipeline Solutions) will be spun out of VTZ and Chelpipe respectively. The spun-out businesses will simultaneously be merged with TMK's Group-level pipeline solutions business (TMK Pipeline Solutions), and will operate under the TMK Pipeline Solutions brand.

TMK Pipeline Solutions and SmartMet will own and manage the entire product supply and sales chain that TMK currently has in place.

The reorganization seeks to enhance TMK Group's business performance, improve its financial position and corporate structure within target business divisions, focus management efforts on key strategic business priorities, and attract more investors to the new business segments. The same applies to VTZ and Chelpipe, which will remain the Group's key assets. The reorganization will enable these businesses to more effectively meet all of their obligations to partners, financial institutions, the government, and employees.

In addition to production capacities, the new companies will have at their disposal all of TMK Group's capabilities and know-how, as well as the quality management system, and all management and non-management employees of TMK plants and management company in the respective business segments.

TMK Pipeline Solutions will focus on leveraging the synergies from the merger of the large diameter pipe businesses of TMK Group and the former Chelpipe Group to achieve leadership in its segment of the Russian market.

As part of the reorganization, Chelpipe engaged Bank GPB as an agent for communicating with Chelpipe bondholders, LECAP as a legal advisor, and Legal Capital Investor Services (LCPIS) as an agent for communicating with retail investors in the bonds. To protect bondholder interests, Chelpipe intends to consider various options to work with bondholders, including security on the bonds to be issued by TMK and a put option.

Bondholders of Chelpipe can submit their questions to the following e-mails:
[e-mail]- for institutional investors
[e-mail]- for retail investors