Publishing group Tiso Blackstar is in the process of selling 100% of the issued share capital of its non-core asset Consolidated Steel Industries (CSI) to Macsteel Service Centres South Africa.
This is part of Tiso Blackstar’s strategy to exit its non-core, non-media related assets.
Tiso Blackstar also notes that the local steel industry continues to struggle since the economic downturn of 2008, with excess production capacity, a large number of competitors and pricing pressures affecting the industry.
The price consideration of CSI will be equivalent to the net asset value (NAV) of CSI and its subsidiaries. The CSI NAV amounted to R68-million in December.
During the six months ended December 31, 2017, CSI generated a loss attributable to Tiso of R7.7-million.