Arrium sold its majority stake in Steel & Tube, a New Zealand company, for $74 million. The sale is expected to drastically reduce the more than $2 billion debt of the steel, mining and mining consumable company that used to be known as OneSteel.
ILVA is Italy's largest state-owned steel plant.
The Asian consortium Steelmakers Australia offered last week to buy the 50.3 per cent stake of Arrium in Steel & Tube for $1 billion, but Arrium rejected the deal. The consortium was led by the Noble Group, a Hong Kong commodities trader and POSCO, South Korea's steel giant.
Steel & Tube is New Zealand's biggest distributor of steel products which enjoyed NZ$405.4 million sales in the 2012 fiscal year.
The sale of Arrium's stake in Steel & Tube is the result of a steel review which also led to the sale of the company's Piping Systems business. Despite the sale, Arrium said it will retain strong business links with Steel & Tube and remain one of its major trading partners in New Zealand.
Prior to the announcement of the sale, Arrium shares on Tuesday decline 2.78 per cent and closed of $0.788.
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