Bethlehem announces agreement to sell its interest in the Iron Ore Company of Canada
For Immediate Release
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
BETHLEHEM, Pa., January 31, 1997 -- Bethlehem Steel said today that it has signed a definitive sales agreement with North, Ltd., an Australian diversified resources company, for the sale of Bethlehem's 37.57 percent equity interest in the Iron Ore Company of Canada (IOC). As part of the transaction, National Steel Corporation will also sell its 21.73 percent equity interest in the Iron Ore Company of Canada.
Bethlehem said that it will have a continuing relationship with the Iron Ore Company of Canada and will purchase iron ore from IOC at market prices under a long-term contract.
The Iron Ore Company of Canada has iron ore production facilities in Labrador City, Newfoundland, ore shipping facilities in Sept-Iles, Quebec, and produces approximately 15 million tons of iron ore annually.
Bethlehem said that the sale of its equity interest, when completed, would result in cash proceeds of about $145 million, the recording of a sizeable gain, and further improvement in its capital structure. Bethlehem said that completion of this transaction is subject to governmental approvals and the consent of the remaining IOC shareholders.
Bethlehem's sale of its interest in the Iron Ore Company of Canada is a continuation of its corporate strategy of concentrating on its core steel businesses and rebuilding its financial strength.
J. P. Morgan & Co. acted as financial advisor to Bethlehem and National in connection with this transaction.