News: KordaMentha appoints UBS, Macquarie for Arrium's Moly-Cop float
Arrium administrator KordaMentha has appointed UBS and Macquarie as joint lead managers on Moly-Cop's potential initial public offering, as revealed by Street Talk on Thursday.
Credit Suisse, Goldman Sachs, UBS, Macquarie, Citigroup and Bank of America Merrill Lynch all pitched to work on the float alongside Deutsche Bank.
In early July, Moly-Cop started meeting fund managers on a global non-deal roadshow to introduce management to potential initial public offering investors.
One positive for the float route is that local fund managers and sell-side analysts are familiar with the business, having watched it prop up Arrium's financial position in recent years.
Moly-Cop is expected to be worth $1.5 billion to $2 billion.
As well as being a joint lead manager on the float alongside UBS and Macquarie, Deutsche is also assessing a dual track process for the manufacturer and supplier of grinding balls and rods.
A teaser document for the auction, mark two, hit the desks of a select group of potential buyers last month.
As revealed by this column, Morgan Stanley has been mandated by KordaMentha to sell the Whyalla steelworks and the other Australian assets inside the collapsed Arrium.
The assets, which have been dubbed Arrium Australia, include the OneSteel Metalcentre operations, the Australian Reinforcing Company and OneSteel Reinforcing. Morgan Stanley's mandate is to recapitalise the whole of the business, including Whyalla. KordaMentha Restructuring partner Mark Korda told The Australian Financial Review there would be no piecemeal sale of the Australian assets and all the local operations would sit under the same roof in a sale process, to maximise returns to creditors and save as many jobs as possible.
