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EVRAZ HIGHVELD STEEL & VANADIUM LTD - Section 189 notice and update on investment process

Release Date: 21/07/2015 11:05
Code(s): EHS     PDF:  
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Section 189 notice and update on investment process

EVRAZ Highveld Steel and Vanadium Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1960/001900/06)
Share code: EHS ISIN: ZAE000146171
(“Highveld” or “the Company”)


SECTION 189 NOTICE AND UPDATE ON INVESTMENT PROCESS


Section 189 Notice
Shareholders         are    advised    that      despite   successful        efforts   to     reduce
fixed costs as well as process improvements in efficiencies, it was
decided    to    temporarily          cease      production     of     steel    making      at    its
Steelworks. This was necessitated by amongst others working capital
constraints      and       reduced    domestic      demand    in     steel    mainly    due      to    a
significant increase in Chinese imports. All plant and equipment will
be placed in curtailed operations mode and prepared for future start
up.


As a result of the temporary closure, the Company reviewed its position
and has issued a proposed restructuring notice in terms of Section 189,
which will require a 60 day consultation process with employees, trade
unions,   facilitated         by     the   CCMA,    regarding      a   possible      reduction        of
approximately 50% in the workforce.


The Company will restructure to a curtailed operating mode, which will
allow a start-up on a limited basis when market conditions improve and
adequate funding obtained.


Investment process
The Company confirms that it has received a number of indicative offers
to    invest    in    the    Company.      The    prospective      bidders     are   required         to
provide the necessary guarantees by Monday 27 July 2015 to proceed to
the next stage of the bidding process.


eMalahleni
21 July 2015


J.P. Morgan Equities South Africa (Pty) Ltd.




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