Asian Consortium $1 Billion Bid for Arrium

Mining and steel making company, Arrium (ASX:ARI) has received an unsolicited bid from an Asian-led consortium called Steelmakers Australia.

• Arrium's stocks on the ASX stockmarket jumped almost 25 percent to 68 cents per share on the announcement.
• The takeover offer was received late last Friday afternoon from the consortium.
• The consortium, Steelmakers Australia, includes: Hong Kong's Noble Group, Korean steel giant Posco, National Pension Service of Korea, Korea Investment Corporation and Korea Finance Corporation.
• Steelmakers Australia director William Randall said, "By using the proven expertise of Posco in steelmaking supported by Noble's global supply-chain management skills, we can make the Arrium business more efficient and globally competitive."
• The takeover offer was posted at 75 cents per share, valuing Arrium at $1.1 billion on a market capitalisation basis.
• The offer for Arrium was at a 37.6 percent premium to Arrium's closing price on Friday.
• Arrium is carrying $2.1 billion in debt.
• Formerly called OneSteel, Arrium is Australia's second largest steel producer.
• OneSteel was a spinoff from BHP Billiton in 2000. OneSteel changed its name in July. Arrium owns steel manufacturing, distribution and recycling units mainly in Whyalla, South Australia.