EVRAZ plc (LSE:EVR) announced that it has signed an agreement to sell a 34-percent stake in EVRAZ Highveld Steel and Vanadium Ltd. (OTCMKTS:HGVLY) to Macrovest 147 Proprietary Ltd. of South Africa.
As quoted in the press release:
It has been agreed that Macrovest will also refinance 50% of the outstanding working capital facility provided by EVRAZ plc.
The sale of such a significant interest in Highveld to a local strategic investor is an important step to ensure sustainable development of Highveld as South Africa’s leading steel and vanadium business.
Alexander Frolov, CEO of EVRAZ, commented:
We have analysed various options for the further development of Highveld and 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. We are looking forward to working together with Macrovest and Mr Petersen personally on the Board of Highveld. As a result of the transaction, EVRAZ will remain a 51% shareholder of Highveld and continue to focus on growing operating efficiency and profit enhancing initiatives.