Spain-based long steel producer Celsa Group is considering selling its mills in Poland, Norway and the UK as part of its new strategy to maintain the financial structure of the company and repay debts to creditors, according to local media reports. The three mills in question reportedly have a total market value of about €1.3 billion.
The group’s Celsa Huta Ostrowiec subsidiary in Poland, which produces bars and profiles, is expected to attract the most interest from potential investors, which could allow Celsa to sell the unit for €800 million, while the Norway-based mill Celsa Nordic, specialized in billet, reinforcing steel and wire rod, is estimated at a value of about €300 million, and reinforcing products, wire rod, merchant bar and light section producer Celsa Steel UK could be valued at about €200 million.
Meanwhile, it is also reported that Celsa and the investment bank Citi are working together to evaluate potential foreign investors.
It is known that the creditors, including Deutsche Bank, Attestor, Anchorage, GoldenTree and SVP, took control of the company last year after the latter failed to conclude a debt restructuring deal worth €3 billion with them. The debt was subsequently restructured, with its maturity extended by five years.