Evraz chiefs sell at multiyear high

With global steel demand going sideways, and the iron ore market still flooded with product, a lot of uncertainty hangs over the integrated industrial group. Even with a leap in coal and iron ore prices in the second half of 2016 - which explains the heady 12-month rise in Evraz's shares - the company's net debt remains more than five times consensus expectations for last year's operating profits.

Against this backdrop, the decision by chief executive Alexander Frolov and chairman Alexander Abramov to take some money off the table seems prudent, and chimes with previous sales. The last time either man made a similar-sized disposal was over the course of a few weeks in early 2013, when Evraz stock was changing hands for around 300p. On that occasion, messrs Frolov and Abramov cashed in to the tune of £2.8m and £5.7m, respectively.

Nevertheless, this recent round of deals does not represent a significant strategic divestment, and should be seen in context. At 216p a share, the chairman's remaining 21 per cent holding is worth £657m, while Mr Frolov's residual 10.7 per cent stake has a paper value of £328m. These recent deals would therefore be outmatched by the return of a dividend that yielded a little over 1 per cent.

A return to regular distributions - which is not expected to happen this year - would surely be welcomed by Chelsea FC owner Roman Abramovich, who passed up the opportunity to join his business associates in their sale, but remains Evraz's largest-single shareholder with a 31 per cent stake.