By Lukas I. Alpert
MOSCOW--Russian steel maker Evraz PLC said Wednesday it intends
to sell its 85% stake in a South African subsidiary that suffered a
labor dispute last year for $320 million to Nemascore (Pty) Ltd., a
black empowerment consortium.
Evraz Highveld Steel and Vanadium Ltd. saw its 2,300 workers go
on strike for four weeks in July and August of last year in a
dispute over scheduling changes. Evraz said in a statement that the
subsidiary had suffered a loss before taxes of approximately $32
million in 2012, but said it had gross assets of about $396
million.
Evraz said the deal, if it goes through, would be the largest
black economic empowerment transaction in the South African steel
sector to date. The company said the deal is subject to standard
due diligence procedures and the conclusion of a formal agreement
and regulatory approval. The deal is expected to be completed in
the second half of this year.
"Our decision to divest the asset will allow us to enhance the
company's focus on our key steel markets in Russia and North
America," Evraz Chief Executive Officer Alexander Frolov said. "We
plan to continue close collaboration with the future owners of the
mill with respect to the vanadium business in South Africa."
Write to Lukas I. Alpert at lukas.alpert@dowjones.com
