“Dniprospetsstal denies rumors of liquidation: what the plant’s shareholders plan for 2025
26 March 10:59
On March 24, the media reported that PJSC Dneprospetsstal Electrometallurgical Plant in Zaporizhzhia allegedly intends to liquidate due to losses for 2024. However, the company promptly denied this information, emphasizing that the purpose of the shareholders’ meeting scheduled for April 29, 2025, is not to close the plant but to find ways to improve its financial situation, Komersant ukrainskyi reports, citing the company’s press service.
Losses in 2024: what is happening to Dniprospetsstal?
According to Interfax-Ukraine, Dniprospetsstal posted a net loss in 2024, forcing shareholders to convene a remote meeting on April 29, 2025.
According to the announcement in the NSSMC system, due to the lack of profit, the company will not distribute funds, accrue dividends or replenish the reserve fund. The losses are planned to be covered by future income.
It is also proposed to “make a decision on the liquidation of the company, in accordance with and in fulfillment of the requirements of Part 2 of Article 16 of the Law on Joint Stock Companies” and to confirm a number of transactions.
However, Dneprospetsstal clarified that liquidation is not the goal.
“No body of the company has made any decisions on closure. On the contrary, we have developed a recovery plan that has been submitted to shareholders for approval,” the company said in an official statement.
Will Dneprospetsstal be liquidated?
The company noted that on March 24, it officially posted a notice of the annual general meeting of shareholders to be held on April 29, 2025, as required by law. Due to the decline in the company’s net assets, the agenda included items in accordance with Article 16 of the Law of Ukraine “On Joint Stock Companies”:
- Consideration and approval of measures to improve the financial condition of the company.
- Consideration of the company’s liquidation, which is required by law.
What is the real situation at the company?
According to the company’s official announcement, Dneprospetsstal has developed specific measures to improve its financial condition, which must be approved by the general meeting of shareholders. The inclusion of the liquidation issue on the agenda is a formality required by law.
At the same time, no body of the company made a decision on liquidation. On the contrary, the shareholders and the company’s management are focusing their efforts on financial stabilization.
Important:
If the general meeting approves measures to improve the company’s financial condition, the issue of liquidation is automatically removed from consideration.
All decisions will be made in accordance with the current legislation.
“Dneprospetsstal will continue to operate and work to improve its economic performance.
Who owns the plant?
According to the National Depository of Ukraine, as of the third quarter of 2024, Dneprospetsstal’s shareholders are Cypriot companies:
- Wenox Holdings Ltd.
- Gazaro Ltd. – 16.5197%.
- Boundryco Ltd. – 11.0131%.
- Middleprime Limited – 9.7901%.
- Crascoda Holdings – 6.6826%.
The history of the plant’s ownership has an interesting twist: in May 2008, the international investment and consulting group EastOne, created by businessman Victor Pinchuk, sold its stake of about 30% in Dneprospetsstal, which was previously under the group’s mandate. The new shareholders of the plant are linked to VS Energy International, whose beneficiaries are Russian oligarchs (Alexander Babakov, Mikhail Voevodin, Yevgeny Giner).
According to the investigation by Schemes: Corruption in Detail, Viktor Medvedchuk and Ihor Kolomoisky were also among the beneficiaries of Dniprospetsstal.
Why is Dneprospetsstal important?
The plant, founded in 1932, is known for its unique product range of more than 800 steel and alloy grades. Despite the damage caused by the war and economic difficulties, it has the potential to recover. The closure of such an enterprise would be a blow to the industry in Zaporizhzhia and Ukraine as a whole.
