London-listed Evraz would sell a 34% stake in Evraz Highveld Steel and Vanadium to South Africa-based investor Macrovest for R289-million.
Evraz planned to shed the stake to the local strategic investor, led by De Beers Consolidated Mines executive chairperson Barend Petersen, to further develop Highveld as South Africa's leading steel and vanadium business, explained CEO Alexander Frolov.
“We … decided to introduce a strong local partner, who we believe will add significant value and expertise in developing our South African asset in a challenging market,” he added.
"We are optimistic of the company’s future development as a reliable and sustainable steel and vanadium producer and significant local employer, and are certainly pleased to make this strategic investment," Petersen said.
The transaction would see Macrovest refinance 50% of the outstanding working capital facility provided by Evraz, which would remain a 51% shareholder of Highveld.
Trade and Industry Minister Dr Rob Davies welcomed the deal, saying it was a “major step” on the road to creating black industrialists.