Steel producer ArcelorMittal South Africa (AMSA) has finalised the sale of its 50% interest in Netherlands-based Macsteel International Holdings for nearly R3-billion to a subsidiary of Macsteel Holdings Luxembourg.
The sale is expected to strengthen the company’s balance sheets, amid continuing losses.
The JSE-listed steelmaker declared a headline loss of R2.52-billion for the year to December 31, 2017, following a loss of R2.59-billion in 2016.
During 2017, AMSA’s net borrowings also surged to R3.2-billion from R290-million in the previous year.
AMSA CEO Kobus Verster previously said the proceeds of the sale would “significantly strengthen the group’s balance sheet and would be used to fund working capital requirements and investments in the operating businesses.”
AMSA’s share price rose by 10.46% on Monday, to R4.33, compared with Friday’s closing share price of R3.92.