A formal process was initiated on Wednesday for the sale of Macsteel Service Centres SA (MSCSA), which is one of South Africa’s most substantive privately owned enterprises.

The current shareholders include steel industry doyen Eric Samson and his investment structures, management and a black economic–empowerment consortium, which includes an employee trust, which holds 25.5% of the enterprise.

A select group of interested parties have been invited to participate in what MSCSA describes as “an orderly and disciplined process aimed at giving those selected an equal opportunity at acquiring an equity interest”.

The process is being exclusively managed by Investec Bank, whose Eldad Friedman told Engineering News Online that “teaser” notices, containing a high-level summary of the opportunity, were issued to domestic and offshore participants on February 6.

Friedman would not be drawn on how many teasers had been distributed, nor would he comment on how long the sale process was likely to take.

MSCSA, which is currently led by Michael Pimstein, operates over 70 steel service centres in Africa and employs over 5 000 people.

“It is well known to most industry sources and insiders that we have, over an extended period of time, been in the process of reviewing and examining different strategic objectives in the best interests of all our stakeholders,” the company said in a statement.

It added that the process had been instituted in “pursuance of these objectives”.

In 2011, Macsteel Service Centres USA (MSCUSA) was sold to Klöckner & Company, of Germany, which is reportedly the largest producer-independent distributor of steel in Europe and North America.

The transaction was completed at a maximum purchase price of $660-million and included assumed debt of $260-million.

MSCUSA recorded sales of around 1.2-million tons, or $1.8-billion, in 2011 and employed more than 1 100 people.