Date 26 May 2000
Number 47/00
BHP ANNOUNCES SALE OF US WEST COAST STEEL BUSINESSES
The Broken Hill Proprietary Company Limited (BHP) today announced the sale of
its US West Coast steel businesses for US$234 million to IMSA Acero, a wholly
owned subsidiary of Grupo IMSA S.A.. The West Coast businesses comprise Coated
Steel Corporation USA (CSC) and Steel Building Products USA (SBP).
The sale consideration for the West Coast businesses also includes a positive
working capital adjustment to be determined at closing of the sale and
includes an earn-out mechanism which will be based on the future performance
of the business. As the consideration is less than the carrying value of the
assets, BHP will recognise a loss on the sale of approximately US$135 million.
The sale is subject to regulatory approvals.
The transaction forms part of BHP's portfolio management activities to position
the Company as a natural resources company with a regional steel focus. As
such, it is also an integral component of the BHP Steel strategic review,
announced in October 1999. This review determined that BHP's steel portfolio
would be based around its Australian and Asian flat and coated products
business. To this end, the Australian long products business is planned to be
spun out later this calendar year. BHP continues to evaluate the market
situation in relation to the divestment of BHP's 50 per cent interest in the
Delta compact steel mill in Ohio.
Coated Steel Corporation (CSC) is a producer of coated steel products with two
steel coating assets, a pickle line, cold mill, galvanizing line and an organic
coating line at the Kalama, Washington State facilities, and metallic and
organic coating lines at Rancho Cucamonga, California. Steel Building Products
is a leading manufacturer and distributor of rollformed steel products and
accessories on the West Coast of the United States.
Grupo IMSA is a diversified industrial company, based in Monterrey, Mexico,
with interests ranging across steel, aluminium and plastics, automotive
components and batteries.
Contact:
MEDIA RELATIONS: INVESTOR RELATIONS:
Mandy Frostick Robert Porter
Manager Media Relations Vice President Investor Relations
Ph: +61 3 9609 4157 Ph: +61 3 9609 3540
Mob: +61 419 546 245 Mob: +61 419 587 456
Pierre Hirsch
BHP Investor Relations - San Francisco
Tel: +1 415 774 2030
