13th Aug 2014 10:22
LONDON (Alliance News) - Russian steel maker Evraz PLC Wednesday said it has signed an agreement to sell a 34% stake in Evraz Highveld Steel and Vanadium to Macrovest 147 Proprietary Ltd for ZAR289 million, or about USD27 million.
"We have analysed various options for the further development of Highveld and decided to introduce a strong local partner, who we believe will add significant value and expertise in developing our South African asset in a challenging market," said EVRAZ Chief Executive Alexander Frolov in a statement.
Evraz will keep a 51% stake in South Africa-based Highveld, and said it will continue to focus on improving the operating efficiency of the unit and undertaking initiatives that will boost its profit.
Macrovest is led by Barend Petersen, a chartered accountant with significant local and global experience. Petersen is the executive chairman of De Beers Consolidated Mines, and a non-executive director of De Beers Group, Ponahalo Group and Anglo American South Africa.
Under the terms of the deal, Macrovest will refinance 50% of the outstanding working capital facility provided by Evraz.
Evraz shares were up 1.8% Wednesday morning at 101.90 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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