EVRAZ HIGHVELD STEEL & VANADIUM LTD - Section 189 notice and update on investment process
EHS 201507210017A
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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