Africa's largest steel producer, ArcelorMittal South Africa, has announced that it has agreed to sell its indirect 50 percent share in Macsteel International Holdings BV (MIHBV) to the Netherlands-headquartered steel trading company Macsteel Holdings Luxembourg SARL (MacHold), which owns the other 50 percent share, for a consideration of $220 million.
According to ArcelorMittal South Africa, MIHBV was set up as a joint venture (JV) between MacHold and ArcelorMittal South Africa and is headquartered in Amsterdam, the Netherlands, engaging in steel trading and shipping through its subsidiaries, Macsteel International Trading Holdings BV (MITHBV) and MUR Group BV and their subsidiaries. However, the investment is no longer considered to be a core asset for ArcelorMittal South Africa, and hence the decision has been made to dispose of the shares.
The proceeds of the sale will be used primarily to strengthen the balance sheet of ArcelorMittal South Africa, to fund its working capital requirements and/or to fund other investments in its operating business.