ArcelorMittal South Africa completes sale of Macsteel

2018-11-06

Nov. 06, 2018 - ArcelorMittal South Africa would strengthen its balance sheet and fund the working capital requirements after completing the sale of an indirect 50 percent interest in Netherlands-based Macsteel International Holdings for USD 220 million, approximately ZAR 3 billion. Earlier this year, ArcelorMittal said it would sell its 50 percent stake in Macsteel International Holdings to a subsidiary of Macsteel Holdings Luxembourg (MacHold) for approximately ZAR 2.8 billion. 

Macsteel International Holdings is 50 percent held by MacHold and 50 percent held by MSSA Investments, a wholly owned subsidiary of ArcelorMittal SA in the Netherlands that engages in steel trading and shipping.

ArcelorMittal said the remaining conditions precedent have now been fulfilled and the parties have accordingly executed the final documents to finalise the sale, which includes payment of the purchase price of R3 billion interest in accordance with the relevant agreements.

ArcelorMittal said that "This marks a significant milestone for the company in achieving its objectives. As indicated the funds will primarily be used to strengthen the balance sheet and fund the working capital requirements and will support the company in achieving its goal to be a sustainable and profitable company.”