Big River Steel up for sale UPDATE | Arkansas Blog

Thursday, August 30, 2018

Big River Steel up for sale UPDATE

Posted By on Thu, Aug 30, 2018 at 10:49 AM

TAKING BIDS: On Big River Steel.
  • TAKING BIDS: On Big River Steel.
A metals industry publication says Big River Steel, the startup in Mississippi County aided by millions in taxpayer subsidies and an equity investment from the Arkansas Teacher Retirement System, may be sold and potential buyers include Nucor, the competitor with operations in Mississippi County.

AMM.com says bids are being taken. But it's ambiguous on what's to come. It may be sold. The request for bids may be to establish a market value for a possible public offering. A minority partner might want to capitalize on an increase in value and sell its share now. The Koch family is the major investor. ATRS owns 20 percent of the enterprise.

The mill has expanded since its inception. The state floated $125 million in bonds for the project and provided $200 million in tax incentives, along with equity investment from a fund built by state contributions to teacher retirement.

A Nucor purchase would be somewhat ironic. It fought the huge corporate welfare the state gave Big River, having received only a tiny bit in its startup days.

More on the speculation in the Blytheville Courier.

UPDATE: I asked George Hopkins, director of ATRS, about the Big River investment and he responded:

The ATRS investment in Big River Steel is a strong and safe investment. ATRS has not attempted to sell its minority ownership position in Big River Steel and has not received any proposal related to selling its minority ownership position in Big River Steel. ATRS is extremely pleased with its investment in Big River Steel and ATRS looks forward to working with management and the other owners to grow and expand Big River Steel as we all contemplated doing when Big River Steel was formed. Big River Steel continues to outperform its financial plan by a wide margin. This success has attracted tremendous interest, especially as Big River Steel is set to embark on a significant expansion project in northeast Arkansas. Any questions regarding strategic matters should be directed to the company.

Tags: , , , ,


Favorite

Comments (4)

Showing 1-4 of 4

Add a comment

 
Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by Max Brantley

Readers also liked…

  • Sabin's subterfuge in the race for mayor has roots in rigged city government

    The Arkansas Democrat-Gazette reports that an ethics complaint has been filed saying that the exploratory committee Rep. Warwick Sabin created to prepare for a run for Little Rock mayor was a subterfuge to avoid the city ordinance that doesn't allow campaign fundraising to begin until five months before the November 2018 election.Of course it is.
    • Aug 10, 2017
  • Use of solar on the rise in Arkansas

    With a pivotal ruling expected any day now from the Public Service Commission, Kyle Massey at Arkansas Business reports on the increase in Arkansans adding solar generation units on their homes and business.
    • Apr 13, 2018
  • Antwan Phillips wants to make a difference in reducing Little Rock violence

    KARK/Fox 16's push to do something about Little Rock violence includes a spotlight on people trying to make a difference — in this episode Antwan Phillips, a lawyer at Wright, Lindsey and Jennings.
    • Aug 30, 2017

Slideshows

Most Recent Comments

 

© 2019 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation