Russian steelmaker Evraz has announced that it has signed an agreement regarding the proposed sale of its 85 percent stake in South Africa-based Evraz Highveld Steel and Vanadium Limited (EVRAZ Highveld) to Nemascore (Pty) Ltd, a black economic empowerment consortium, for a cash consideration of approximately $320 million. Evraz will utilize the sale proceeds for general corporate purposes.
The transaction will be the largest black economic empowerment transaction in the South African steel sector to date. The transaction subject to standard due diligence procedures and the conclusion of a formal agreement is expected to be executed and completed in the course of the second quarter of the current 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 stated that the decision to divest the asset will allow the company to enhance the focus on its key steel markets in Russia and North America.