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Mr Sanjeev Gupta plans float for Australian steel operations

Steel News - Published on Mon, 11 Mar 2019

Image Source: SteelGuru
Sydney Morning Herald reported that Mr Sanjeev Gupta, the man credited with saving the iconic Whyalla steelworks, is targeting a near AUD5 billion float of the Australian arm of his sprawling industrial empire in a move he hopes will quash speculation his business may be in trouble. Mr Gupta said “An initial public offering of the Australian business would show his companies can work under governance rules; being listed would bring transparency and shows our model is successful. A listed company would also mean the discipline of publishing accounts, as well as giving us a currency and market value which will allow us to do other things.”

As per report “It is understood GFG aims to list between 30% and 40% of its Australian division and is targeting a valuation of between AUD 3 billion and AUD 5 billion.”

Australian Workers Union national secretary Daniel Walton, whose union represents workers at Whyalla, said the union was watching developments at GFG closely. He said "On the one hand, the transition to a public company can often reduce the flexibility that a private business has to make decisions focused on the long term. If the money raised by the float goes towards improving the company's facilities, that would benefit workers at the plant. Either way the important thing is that workers are included on the journey. We’ve experienced how much constructive progress can be made working together and collaborating, so it’s important we remain part of the decision making process.”

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Posted By : Rabi Wangkhem on Mon, 11 Mar 2019
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