CAPE TOWN - Steel company ArcelorMittal South Africa will sell its 50percent interest in Macsteel International Holdings for R2.8billion, ArcelorMittal South Africa said yesterday.
ArcelorMittal South Africa said it had signed a non-binding memorandum of understanding with, among others, Macsteel Holdings Luxembourg (MacHold) for a subsidiary of MacHold to acquire ArcelorMittal South Africa’s 50percent interest in Macsteel International Holdings.
Macsteel International Holdings is a joint venture between MacHold and ArcelorMittal. “In the early years, most of the steel for the joint venture was sourced from ArcelorMittal South Africa.
Today, while it remains an important source of steel products, ArcelorMittal South Africa supplies less than 20percent of the total tonnages traded and less than 2percent of volumes shipped by Macsteel International Holdings. It is for this reason that the investment is no longer considered to be a core asset and we have decided to dispose of our interest,” said
ArcelorMittal South Africa chief executive Kobus Verster. ArcelorMittal South Africa said it would dispose of its interest through a sale of shares agreement which would take into account optimal structuring from a commercial and legal perspective.
The transaction was subject to ArcelorMittal South Africa and Macsteel International Holdings entering into a new, four-year marketing agreement. ArcelorMittal shares yesterday closed 5.39percent higher on the JSE at R2.15.
- BUSINESS REPORT