ArcelorMittal's ArcelorMittal South Africa Ltd. unit entered into a memorandum of understanding to sell its 50% stake in steel trading and shipping company Macsteel International Holdings BV, or MIHBV, to joint venture partner Macsteel Holdings Luxembourg SARL for US$220 million.
Macsteel Holdings holds the remaining 50% interest in MIHBV.
ArcelorMittal South Africa said in a May 28 release that the investment is no longer considered a core asset, as it now supplies less than 20% of the total steel tonnages traded by MIHBV, and less than 2% of volumes shipped.
The proceeds will be used primarily to strengthen the company's balance sheet, as well as to fund working capital and investments.
The transaction remains subject to the execution of a four-year marketing deal between the parties, and the signing of final and binding agreements.
