Deutsche Bank to advise Arrium Moly-Cop sell off

Arrium’s administrator KordaMentha will appoint Deutsche Bank for the sale of Arrium’s grinding media business, Moly-Cop.

The Australian Financial Review reports that the bank will examine an ASX float versus straight sale of the division, which has been valued at between $1.5 billion and $2 billion by analysts.

The administrators announced last month that it expected most of the sale of the Arrium steel and iron ore group – which owes roughly $4 billion and includes 94 companies – would be complete by the year’s end.

Any sale of the profitable Moly-Cop business is complicated by the SA government stating that co-investment in Arrium’s loss-making Whyalla steel mill is conditional on the company being sold off intact.

The formal sale of Arrium’s assets will begin next month, KordaMentha has said.