Sale of Macsteel SA moves into due diligence phase
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 last week 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 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%), 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 busi- ness, and qualifying prospective bidders were issued with an ‘information memorandum’ to enable them to submit indicative offers.
“[Owing] 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, [after] which the selected bidders will be requested to submit binding offers to acquire the MSCSA equity interest,” Friedman said.
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