JSE-listed steel group Evraz Highveld Steel and Vanadium on Wednesday renewed its cautionary announcement, saying its parent company Evraz is still in negotiations with potential buyers for its 85% shareholding in the South African business.
“Shareholders are advised that negotiations with potential purchasers remain incomplete, confidential and nonbinding, and hence there is still no certainty whether a transaction will take place,” Evraz Highveld stated.
The Russian group announced a $320-million deal with black economic-empowerment consortium Nemascore in March 2013, which it had planned to conclude by the end of that year. However, in February this year, Evraz revealed that it was also in discussions with other potential bidders. These potential bidders are understood to be conducting due diligence investigations into the affairs of the company.
The Russian group bought the South African steel business from Anglo American in 2006.
Evraz Highveld reported a loss of R379-million in the year ended December 2013, which is an improvement on the R943-million loss of 2012.