4 days ago
Australia begins formal sale process for Gupta's Whyalla Steelworks
SYDNEY, June 24 (Reuters) - The Australian government on Tuesday formally opened the sale process for commodity tycoon Sanjeev Gupta's Whyalla Steelworks, which it said has attracted strong interest from global steelmakers looking to expand into low-emission manufacturing.
The steel plant in the state of South Australia was placed in administration in February, with its operating company owing tens of millions of dollars to creditors, and forced the state and federal government to come up with an A$1.9 billion ($1.23 billion) bailout package.
"Selected prospective buyers have now been granted access to a secure data room - enabling initial due diligence and allowing parties to prepare non-binding indicative offers," Federal Industry Minister Tim Ayres said in a statement.
"A range of prospective buyers have already expressed interest in acquiring and transforming the integrated operations."
The independent sale process will be led by administrator KordaMentha and sale advisors 333 Capital, Ayres said.
Gupta's family conglomerate, GFG Alliance, did not immediately respond to a request seeking comment. In March, GFG said it remained the largest creditor in Whyalla Steelworks at A$536 million ($347 million).
The privately held conglomerate has been refinancing its global businesses in steel, aluminium and energy since its backer, supply chain finance firm Greensill, filed for insolvency in March 2021. Another subsidiary, Liberty Steel East Europe, was put into administration late last year.
($1 = 1.5444 Australian dollars)
