Hong Kong-based Resources Company Wins Bid for Highveld

Engineering News reported that a Hong Kong-based International Resources Limited (IRL) was named the successful bidder for Evraz Highveld Steel and Vanadium (OTCMKTS:HGVLY), following a sale process as part of the business rescue process.
As quoted in the market news:

The final offer, which was submitted on August 28 and revised on September 15, was valued at R405-million, including an interlinked offer for the Mapochs mine, which supplies iron-ore to the Mpumalanga steel mill.
Business rescue practitioner Piers Marsden told Engineering News Online that the proposed transaction, along with other aspects of a larger business rescue plan, would be placed before creditors and shareholders for a vote on September 28.
The deal could be pursued either as a scheme of arrangement, or as a sale of the business as a going concern. Under either model, IRL had agreed to set aside R350-million for Highveld’s creditors and a further R35-million for Mapochs creditors. Should shareholders opt to support the scheme offer, the Highveld shares would be valued at R20-million, while the 26% of Mapochs shares not already owned by Highveld were valued at R5-million.
Should no new tax liabilities emerge, the creditors would receive between 15c and 29c in every rand owed to them.

Click here to read the full Engineering News report.