Lucchini aims for agreement on sale of group by end of summer

Friday, 18 May 2012 16:25:10 (GMT+3)   |  
       

Maurizio Rea, chief financial officer of Italian steelmaker Lucchini Group, has stated that the future of the steelmaking group will become clear by around the end of the summer.
Mr. Rea said that Lucchini is currently in advanced talks with potential buyers, with the aim of signing a memorandum of understanding for sale of the group by the end of summer or immediately after, while it wants to complete the transaction by the end of the year.
He went on to say that Lucchini's management is targeting a single sale of the entire group, though adding that several purchase proposals had been received which would involve a breakup of the group.

As regards the dismantling of the group, Lucchini has already sold Bari Fonderie Meridionali to a Czech company and Ascometal to the US investment fund Apollo, earning more than €335 million needed to allow the debt restructuring plan to proceed. The group's debt currently amounts to €600-650 million.

In recent months, many international steelmakers have been labeled as likely buyers of Lucchini group, from Russia's Novolipetsk Steel, Evraz and Magnitogorsk Iron and Steel to Ukraine's Metinvest and India's Tata Steel and Jindal Steel and Power Limited.


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