ARRIUM administrator KordaMentha has begun its review of the final two bids for the company’s Whyalla steelworks and east coast operations.
Lead administrator Mark Mentha issued a statement this afternoon to confirm that KordaMentha had received offers for the whole of Arrium from the two short-listed bidders.
They are South Korea’s Posco, together with private equity firm Newlake Alliance Management, and GFG Alliance — a partnership between British-based Liberty House and commodity group SIMEC.
“The process from here will involve a thorough review and comparison of the offers in consultation with Morgan Stanley, our sale advisers,” Mr Mentha said.
“This is a complex business and the offers have many conditions to be worked through. This will require active dialogue with the bidders, government and key stakeholders.
“We can confirm both bidders have filed their Foreign Investment Review Board applications.
“We look forward to being able to provide details of the preferred bidder and sale completion timeline as things progress.”
Feedback from Arrium’s committee of creditors, which includes representatives from Australia’s big banks, will be sought.
It is hoped that an announcement of the sale will occur by June 30.
Earlier this week, Federal Treasury Secretary John Fraser said it was “hard to see a good outcome’’ for Whyalla.
Speaking to an estimates committee in Canberra on Monday, Mr Fraser said it looked as though Arrium would be “a smaller-rather-than-larger plant” after its sale.
“I would love to see it flourish. I don’t like the impact on the community, but looking at what I know … that’s why I said it’s difficult to see in the short term it’s going to be bigger than it was before,” he said.
A spokesman for Liberty House declined to comment, citing confidentiality agreements.
Originally published as Two Arrium offers under consideration