Stemcor acquires 15% holding in Australian scrap recycling group

Stemcor, the world’s largest independent steel trader, has participated in a rights issue in Australian scrap recycling group CMA Corporation Limited (CMA). For a consideration of AUS13m, Stemcor has been granted a 15% equity share in CMA.

CMA is an integrated recycling group and a publicly listed company in Australia (ASX: CMV). The group’s major activities are trading, processing and recycling of secondary ferrous and non-ferrous metal products. Utilising a variety of advanced technologies and employing 450 staff across 23 modern facilities in Australia, Asia and North America, CMA’s operations convert a wide range of materials into value-added products.

As part of a recapitalisation proposal underwritten by Austock Securities Limited, CMA’s 8 for 1 new entitlement offer at a  share price of AUD0.01 has raised AUD77.5m. In addition to Stemcor, other key investors and sub-underwriters are Scholz Invest GmbH and Souls Private Equity Limited.  The proceeds will be used for debt reduction and Stemcor will be providing an additional facility to support CMA’s working capital requirements.

Paul Whitehead, Stemcor’s Director for Australasia, said: “Stemcor trades approximately 1.5m tonnes of ferrous scrap per annum and the business is growing. Origins are Australia, Continental Europe, South Africa, the UK and the USA. This investment gives us a firm source of supply for key destinations in the Far East, India and South East Asia.”

More information on CMA is available at: http://www.cmacorp.net