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SEOUL, Nov 4 (Reuters) - POSCO Capital, a venture capital arm of South Korean steelmaker POSCO 005490.KS , has put in a bid to acquire Australia's Arrium Ltd ARI.AX steelworks, a spokesman at POSCO told Reuters on Friday.
POSCO capital is making the bid with private equity, the spokesman said, without revealing the value of the bid or whether the private equity participation consists of one or more companies.
POSCO - the world's fourth-biggest steelmaker in 2015 - had said on Thursday the company itself was not a bidder for Arrium, but was trying to sell technology to the Australian group. industry minister Greg Hunt had previously said on Thursday after meetings in South Korea that "POSCO" had expressed a "strong desire" to acquire the steelworks, providing a lifeline as Arrium struggles to stay afloat and pay off debts.
POSCO, which has dozens of affiliates, has been restructuring and shunning acquisitions in recent years, as it reeled from high debt because of slowing demand and an earlier acquisition spree.
POSCO last month posted its strongest quarterly operating profit in more than four years, but cautioned that its results could weaken in the current three-month period as high raw material prices bite. in April descended into voluntary administration, a precursor to bankruptcy, after creditors rejected a $927 million bailout proposal by a private equity group that would have paid no more than 55 cents on the dollar for their claims.
KordaMentha, the private corporate restructuring firm handling the sale and dealing with creditors, has shown a preference for a buyer-takes-all sale of Arrium's Australian assets, which include an east coast steel business, the Whyalla steelworks, a Southern Ocean port and an iron ore mine.