Last Thursday, things were not looking good for the Voestalpine share: the Austrian steel and technology group’s shares had fallen to 24 euros in Xetra trading – a new low for the year. Before the weekend, however, the Voestalpine share ( Daily Current Rating ) had already recovered to 24.68 euros, and on Monday it went up to 25.66 euros. On top of that, there was new news: The company is in negotiations to sell the majority of its subsidiary “voestalpine Texas”.
Voestalpine wants to sell 80 per cent
Voestalpine had in recent months “conducted an open-ended market sounding to stabilise the business model of its direct reduction plant in Corpus Christi, Texas”, according to a press release on Sunday. As Voestalpine only needs part of the Hot Briquetted Iron (HBI) production capacity there for its own use, it had also explored establishing a strategic partnership in the form of a shareholding concept as one option, it said.
“As a result of this review, voestalpine is currently in negotiations to sell 80 per cent of its shares in voestalpine Texas,” the statement said. According to the statement, part of voestalpine’s further participation is to be an agreement to secure the long-term volume of HBI at the Linz and Donawitz sites that will be needed in the future for the first decarbonisation step. Negotiations are at an advanced stage, it is said. The sale could “lead to a significant reduction in voestalpine’s net financial debt”.
Voestalpine can replace Russian coal
Voestalpine had recently come under pressure on the stock exchange, as the coal needed for the blast furnaces had so far come in part from Russia. However, Voestalpine could replace Russian coal completely, reported the ORF, among others, on Wednesday. In recent weeks, “measures have already been taken to procure additional quantities of coal”, it said.