Jun 29, 2012
Cisco sale at an 'advanced' stageBack
Construction|Natal|Africa|Cisco|Housing|Murray|Africa|Newcastle Mill|Construction|Prospective Buyer|Steel|Steel Mill|Steel Rolling Mill|Western Cape|Henry Laas|Reinforcing
© Reuse this
The identity of the buyer was not disclosed, nor was the precise composition of the assets that would be sold, with M&R also housing a reinforcing bar (rebar) distribution network.
CE Henry Laas said on Friday that the group was unlikely to meet its second internal target for completing the noncore disposal, which had been set for June 30. The JSE-listed group initially set the target for closing out the sale as the end of 2011.
In late 2010, M&R indicated that it was planning to dispose of Cisco as a priority, having earlier initiated a programme to close or dispose of its underperforming assets.
Cisco is an electric arc furnace melt shop and reinforcing steel rolling mill and the curtailment of production from the facility, together with the failure of a furnace at ArcelorMittal South Africa’s Newcastle mill, in KwaZulu-Natal, led to serious regional rebar shortages in 2011.
“Currently, we do have agreement in principle with the prospective buyer,” Laas reported.
He added that he expected to be in a position to confirm the sale before the group reported its year-end results, scheduled for August 29.
“It took longer than what we had anticipated, but it is under way,” Laas said, describing the potential transaction as being “very far advanced”.
The disposal formed part of the group’s three-year recovery and growth plan, with the 2012 financial year having focused primarily on the recovery aspects of that strategy.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Metals News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.