An IPO for Arrium’s grinding media business, Moly-Cop, could come soon, according to reports that say a sale is supported by fund managers.
The Australian reports that it is looking less likely that a value of $2 billion – in the higher range of the price sought in a failed sale process last year – would be realised.
The grinding media business has about a four-fifth share of the global market, and revenues before tax of $160 million.
It is sometimes described as the “jewel in the crown” steel and iron ore group Arrium, which went into administration in April.
Administrators KordaMentha had hoped the sale could be made next year, but the process has been sped up due to the high cost of administrative fees, according to an unnamed source cited by The Australian.