Following “strong worldwide interest", a select number of bidders have been chosen to participate in the due-diligence phase of the disposal of Macsteel Service Centres SA (MSCSA) – the formal sale process was initiated in early February.

Investec Bank, which is overseeing the process, indicated on Monday that it had received a number of indicative offers for “100% of the equity in MSCSA”.

“The process will be imminently proceeding to a due-diligence phase,” Investec’s Eldad Friedman said.

He told Engineering News Online from London that the selected participants would have access to a “virtual” due-diligence room, as well as to MSCSA’s management. In addition, site visits would be arranged.

Current shareholders include Eric Samson and his investment structures, management and a black economic–empowerment (BEE) consortium, which holds 25.5% of the enterprise.

The BEE owners include Kagiso Trust Investments (7.5%), the Shanduka Group (7.5%), the Macsteel Employee Trust (5%), Peotona Development Investments (2.5%), Future Africa Investment Holdings (1%), Kheip (1%), representing the Sonn family, and Dr Len Konar (1%).

All the shareholders were selling, but Friedman said the BEE partners were entitled to “bid like everyone else”.

During the first quarter, a select number of domestic and international entities were invited to submit their interest in the business, and qualifying prospective bidders were issued with an ‘information memorandum’ to enable them to submit indicative offers.

“Due to the number of prospective bidders significantly exceeding the available places in the due-diligence investigation, only a limited number of bidders have been selected to proceed to this phase, post which the selected bidders will be requested to submit binding offers to acquire the MSCSA equity interest,” Friedman said.