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Update: Arrium Reduces Its Net Debt With The Wire Rope Division Sale

Arrium (ARRMF) has announced its intentions to sell its wire rope division to Belgium-based Bekaert for A$90M ($70M). Even though Arrium's wire rope business has been the leader on the Australian continent for quite a while, the company decided to divest the asset in order to focus on its mining consumables division.

There's also no doubt the financial position of Arrium has also played a role. Now this division will be sold, its net debt will be reduced by both the net debt position of the subsidiary as well as the cash inflow of $70M which will be offset against the gross debt position. This sale also increased Arrium's divestment target to A$150M ($105M) for the financial year 2015. It looks like Arrium is re-orienting itself as it announced earlier on it was shutting down the Southern Iron mine in Australia. Mothballing this mine wasn't a bad idea as… Read More …