A prolonged deliberation process between major lenders as to what to do with collapsed South Australian metals business Arrium’s valuable Moly-Cop division seems to be entering its final chapter.
Two private bidders are now reportedly offering competing bids, and a float on the ASX remaining a third option.
AFR’s Street Talk column this week reported US-based private equity firm American Industrial Partners was the mystery second bidder for the Moly-Cop business, which produces metal consumables for mining and other heavy industries.
Led by Arrium’s appointed administrator KordaMentha, the failed South Australian company’s lenders are said to be considering American Industrial Partners’ bid against another bid from KPS Capital Partners.
American Industrial Partners describes itself as an “operationally-oriented middle market private equity firm,” and generally targets businesses with revenues of $200 million or more.
KPS Capital Partners is a US$5.5 billion fund which says it is “focused on making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change.”
Street Talk reports the third option – floating Moly-Cop as its own entity on the ASX – is looking like the least likely at this stage.