ArcelorMittal South Africa completes sale of Macsteel

The deal is valued at R3.2 billion.

Steel company, ArcelorMittal South Africa, said on Monday that it has completed the sale of an indirect 50 percent interest in Netherlands-based Macsteel International Holdings for R3.2 billion.

In May 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 R2.8 billion. 

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

On Monday, ArcelorMittal said the deal would proceed, with Macsteel agreeing to pay it $220 million (equivalent to R3.15 billion at a R14.36 to dollar exchange rate at 12.18 pm on Monday), plus interest.

“This marks a significant milestone for the company in achieving its objectives,” the company said in a statement.

ArcelorMittal South Africa said the proceeds of the sale will be used to strengthen its balance sheet and fund its working capital. It will also support the company “in achieving its goal to be a sustainable and profitable company.”