Arrium Limited
(ASX:ARI) says it will gain $73.4 million from the sale of its 50.3 per cent stake in New Zealand listed Steel & Tube Holdings Limited (NZE:STU).
The mining and materials group says the divestment comes following its steel review which also resulted in the sale of its Piping Systems business.
Arrium expects to put the proceeds of the latest sale to reducing debt and gearing levels.
The company also plans to maintain a strong relationship with Steel & Tube Holdings and for the steel distribution company to remain one of Arrium’s key trading partners in New Zealand.
Shares in Arrium fell 2.78 per cent on Tuesday, closing at $0.788 before the announcement was made yesterday.
Arrium generated a net profit of $63.6 million in the 2012 financial year.
