Global steel company Evraz has agreed to sell 85% of its stake in South African susbsidiary Evraz Highveld Steel and Vanadium (Evraz Highveld) for US$320 million or just less than R3 billion to a black economic empowerment consortium represented by Nemascore.The transaction will be the largest black economic empowerment transaction in the South African steel sector to date. The transaction is subject to standard due diligence procedures and the conclusion of a formal agreement, the implementation of which will be subject to requisite regulatory approvals. The parties expect the transaction to be executed and completed in the course of Q2 of 2013. As part of the deal, the parties have agreed upon a transition period during which Evraz will support the
Evraz Highveld new management team to ensure stable operations and a smooth transfer of the business.
According to Evraz, it will utilise the sale proceeds for general corporate purposes.Should the transaction become unconditional, in compliance with the Companies Act, 2008, a mandatory offer will be made to all the remaining shareholders.