54090
ESCO is the only integrated steel producer in Iran using blast furnaces.
ESCO is the only integrated steel producer in Iran using blast furnaces.

ESCO Stake Sale Gets No Bids

ESCO Stake Sale Gets No Bids

The offer to sell a 17% equity stake in Iran’s Esfahan Steel Company attracted no bids by the Nov. 16 deadline, the Iranian Privatization Organization said in a statement.
It is the second time the IPO tried to sell a stake in ESCO, but despite cutting the minimum price by 37%, it was again unsuccessful, S&P Global Platts reported.
IPO advisor, Seyyed Jafar Sobhani, said a new date would now be set for the sale.
At least 17% of ESCO’s shares owned by the national steel industry pension fund must be sold to clear the fund’s debts to the government.
The rest of the company’s shares are owned by two other funds and other holders.
Sources said there are no signs of serious interest from any domestic or foreign company to buy a stake in ESCO, which is not profitable now but has a reasonable amount of assets.
ESCO is the only integrated steel producer in Iran using blast furnaces.
Founded in 1971 using Russian technology, it was renovated by Italian and Japanese companies and also a new blast furnace was built by POSCO to increase hot metal capacity to 3.6 million tons/year from around 2 million tons/year.
One of the company’s blast furnaces is idle because of low demand in the domestic market. It made a loss of 3.6 trillion rials (about $98 million) in the first six months of the current Iranian year that started in March, according to the company’s filing to Tehran Stock Exchange. The loss is, however, 10% less than in the same period of the previous year.
ESCO recently started production at a 400,000 tons/year rail plant and signed a deal with the Islamic Republic of Iran Railways to supply 40,000 tons of U33 rail.

 

Short URL : https://goo.gl/AHpzxl
  1. https://goo.gl/GgRREr
  • https://goo.gl/cMIysQ
  • https://goo.gl/kZMMBN
  • https://goo.gl/JRpkXM
  • https://goo.gl/sh5b5n

You can also read ...

Qatar, Oman Becoming Iran's New Trade Gateways
Iran is working to curb its trade ties with the UAE, replacing...
Connectivity Central to Iran-India Future Ties
Iranian President Hassan Rouhani’s recent state visit to India...
Nissan to Test Self-Driving Taxis
Nissan Motor Co is taking its first steps to becoming an...
Export Billet Prices Climb Amid Higher Offers, Transactions
Iranian export billet prices went up by $5-15 per ton on an...
Coated Steel Strip Production Jumps 42% in 10 Months
Iran’s coated steel strip output reached a record 1.26 million...
Renewed Efforts to Sideline US Dollar in Foreign Trade
Months after a meeting between Iran’s Leader Ayatollah Seyyed...
Rial Gaining Ground
Rial continued its gain against the US dollar in Tehran's...
Exports to Thailand, Indonesia See Biggest Rise
Iran’s exports to Thailand and Indonesia, crude oil excluded,...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus