Australia – Australia’s largest scrap conglomerate CMA Corp. is scheduled to recommence share trading on the Australian Stock Exchange on September 20 – one and a half year after voluntary suspension. This follows a restructuring process whereby CMA raised gross proceeds of approximately A$ 77.5 million.
As part of the group’s operational and management restructuring process, Stemcor Holdings’ Director for Australasia Paul Whitehead has joined the CMA board. Stemcor, one of the world’s largest independent steel trading groups, participated in the raising of capital and will hold a 14.92% (US$ 14 million) stake in CMA. It has also provided an indicative term sheet for a US$ 30-million, three-year revolving pre-payment arrangement secured against the group’s inventory and receivables.
‘This investment gives us a firm source of supply for key destinations in the Far East, India and South East Asia,’ says Mr Whitehead. On an annual basis, Stemcor trades around 1.5 million tonnes of steel scrap.
German scrap conglomerate Scholz remains the major shareholder in the Australian company; Scholz’s Pharag Johannes Bhatt remains as CMA’s Chairman. Since the company has been suspended from the ASX, CMA has sold several assets and reduced its workforce in Australia and New Zealand.