JOHANNESBURG – Steel company ArcelorMittal South Africa said on Monday that it would strengthen its balance sheet and fund the working capital requirements after completing the sale of an indirect 50 percent interest in Netherlands-based Macsteel International Holdings for US$220 million, approximately R3 billion.

Earlier this year, ArcelorMittal said it would sell its 50 percent stake in Macsteel International Holdings to a subsidiary of Macsteel Holdings Luxembourg (MacHold) for approximately R2.8 billion. 

Macsteel International Holdings is 50 percent held by MacHold and 50 percent held by MSSA Investments, a wholly owned subsidiary of ArcelorMittal SA in the Netherlands that engages in steel trading and shipping.

On Monday, ArcelorMittal said the remaining conditions precedent have now been fulfilled and the parties have accordingly executed the final documents to finalise the sale, which includes payment of the purchase price of R3 billion interest in accordance with the relevant agreements.

"This marks a significant milestone for the company in achieving its objectives.