[miningmx.com] – RUSSIAN steel group Evraz, in which billionaire Roman Abramovich is a shareholder, is to sell its 85% stake in Evraz Highveld Steel & Vanadium for $320m (R3bn) in cash.
The buyer is a consortium represented by Nemascore and if completed would become the largest black economic empowerment deal in South Africa’s steel industry, Evraz said in a statement to the JSE.
The sale comes after a nightmare year for the South African steelmaker in the year ended December 31 in which it reported a loss of R1bn from a mere R15m loss in the previous financial year.
The company suffered the effects of a four-week strike as members of the National Union of Mineworkers protested against the reduction of overtime hours as Evraz Highveld Steel & Vanadium sought to cut costs.
Evraz, which will use the proceeds from the sale for general corporate purposes, expects the transaction to be completed in the second quarter of this year.
“The parties have agreed upon a transition period during which EVRAZ will support the
management of EVRAZ Highveld to ensure stable operations and a smooth transfer of
the business, . ‘ Evraz said in a statement.
A mandatory offer to other shareholders would be made should the transaction become unconditional.
