A diplomatic way to say, hey we need some more cash and will sell anything to get it!
Why couldn't they have done it without Nippon? Hopefully the board will explain this in days to come.
BlueScope in $1.4bn JV with Nippon
by: Rhiannon Hoyle From: Dow Jones Newswires August 13, 2012 9:02AM
BLUESCOPE Steel will form a $1.4 billion joint venture with Nippon Steel in a bid to boost its access to the construction sectors of South East Asia and North America.
The new equal joint venture, which will be called NS
BlueScope Coated Products, will "facilitate entry into new markets not currently accessible to BlueScope," the company said in a statement this morning.
BlueScope, which is due to report its annual earnings next week, said it expects to report a net loss of about $1 billion for the last financial year, due to a restructure of its Australian steel-making business and impairment charges of about $310 million.
Under the joint venture, Nippon Steel will acquire 50 per cent of BlueScope's interest in Asean and North American building products businesses.
BueScope will receive about $540 million in net proceeds, after allowing for taxes, minority interests and transaction costs.
BSL Price at posting:
$2.16 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)