UPDATE: Talks on Arrium ‘exclusive’

DISCUSSION: Fairfax Media reports that Arrium administrators are speaking to Korean Consortium on an 'exclusive' basis despite receiving a revised bid from Liberty House.
DISCUSSION: Fairfax Media reports that Arrium administrators are speaking to Korean Consortium on an 'exclusive' basis despite receiving a revised bid from Liberty House.

Fairfax Media reports have revealed that Administrators KordaMentha are dealing with the Korean Consortium on an "exclusive" basis on the sale process for the Arrium assets despite having received a revised, last-ditch offer from Liberty House.

Liberty House and its close stablemate SIMEC submitted a revised, higher bid for Arrium a day or so after after the Korean consortium headed by private equity firm Newlake Alliance was announced by KordaMentha as the "preferred" bidder.

The emergence of the revised bid was revealed by The Australian Financial Review.

Liberty House said in a statement on Monday that it intended to continue pursuing discussions and pointed out that the process remained subject to final approval from Arrium creditors.

"We would like to confirm that we have submitted a revised bid," the Liberty House statement said.

"The process remains subject to final creditor approval. We remain passionate about the opportunity and intend to continue pursuing discussions," the statement said.

A spokesman for KordaMentha said on Monday the firm was in negotiations with the Newlake consortium on an exclusive basis after an exhaustive process run by investment bank Morgan Stanley.

"The deed administrators are dealing with the Korean consortium on an exclusive basis," the spokesman said.

"Morgan Stanley ran a thorough process with the final two bidders on behalf of KordaMentha Restructuring".

The spokesman said Morgan Stanley had recommended the Newlake consortium, which the administrators put to the committee of creditors.

"The Committee overwhelmingly supported Newlake being chosen as the preferred bidder," the KordaMentha spokesman said.

"The only material condition was the provision of an acceptable Government support package for Whyalla," he said.

Source: http://www.afr.com/business/energy/electricity/arrium-administrators-say-talks-with-koreans-exclusive-as-british-lob-second-bid-20170619-gwtxgp