Prospective Arrium buyer Liberty House has moved to assure stakeholders it is not planning to break up and flip the business, but instead plans to potentially float aspects of the firm on the London Stock Exchange.
Liberty, led by executive chairman Sanjeev Gupta, is one of several bidders looking to buy Arrium, the steel mining and metals business that collapsed last year.
Gupta reportedly told AFR this week Liberty is keen to become a long-term owner of all Arrium steel assets, including the Whyalla steelworks, if its bid is successful.
“Absolutely, it’s for the lot,” Gupta was quoted as saying of his group’s bid.
He reportedly said “all four or five” of Liberty’s existing businesses were being examined for a potential London listing, and Arrium could be added to that.
“We’re open to considering all of those options,” he was quoted as saying, before assuring interested parties his firm did not plan to flip any of the Arrium assets.
“We haven’t sold a business in 25 years … We’re looking to build businesses rather than flip.”
Liberty is joined by South Korean steelmaker Posco, Canadian investor Brookfield, and others in the bidding process, according to reports.
Arrium announced in November it would sell off its metal manufactures firm Moly-Cop to American Industrial Partners for a little more than $1.6 billion, with the proceeds of that sale to go to the company’s lenders.
This sale reportedly removed BlueScope Steel from the bidding for Arrium, with the ASX-listed steelmaker reportedly not interested in the Whyalla steelworks – the other significant asset operated by the business.