REG - Severfield PLC - JSW Severfield Structures Limited Option Agreement

SeverfieldAnnouncement

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RNS Number : 7165R  Severfield PLC  18 July 2025

18 July 2025

Severfield plc

('Severfield', 'the Company' or 'the Group')

JSW Severfield Structures Limited ('JSSL') option agreement

 

Severfield plc, the market leading structural steel group, today announces
that the Group has entered into a share purchase option agreement (the 'Option
Agreement') with JSW Steel Limited ('JSW'), India's leading steel manufacturer
and its partner in the Indian joint venture, JSSL (engaged in design,
fabrication and erection of structural steelwork and ancillaries, including
decking for construction projects). JSW and the Company, each currently hold a
50 per cent interest in JSSL. The Option Agreement will be granting Severfield
the right, but not the obligation, to dispose of an interest of up to 24.9 per
cent in JSSL to JSW for up to £20m, exercisable, at its sole discretion, at
any time on or before 31 March 2026.

 

The Option Agreement reflects the Board's prudent approach to strategic
planning and provides the Group with additional financial flexibility. The
Board confirms there is no current intention to exercise the Option Agreement
and any decision to do so, and to dispose of any of its shareholding in JSSL,
would only be made following a rigorous business case assessment. JSSL remains
a strategically important venture for the Group and the Board continues to
believe in its long-term value creation potential within the Indian market and
remains committed to its successful partnership with JSW. The Group confirms
that if the Option Agreement is exercised, a further announcement will be made
though RNS.

 

As previously announced, the Group will announce its financial results for the
year ended 29 March 2025 on Thursday 24 July 2025.

 

For further information, please contact:

 

Severfield
Charlie
Cornish
01845 577 896

Non-Executive Chairman

 

Adam
Semple
01845 577 896

Chief Financial Officer

 

Jefferies International               Sam
Barnett
020 7029 8000

 

Panmure Liberum                     Nicholas How
 
020 3100 2000

 

Camarco
severfield@camarco.co.uk (mailto:severfield@camarco.co.uk)

Ginny Pulbrook
 
07961 315 138

Tom Huddart
 
07967 521 573

 

Notes to editors:

Severfield is the UK's market leader in the design, fabrication and
construction of structural steel, with a total capacity of c.150,000 tonnes of
steel per annum. The Group has seven sites, c.1,800 employees and expertise in
large, complex projects across a broad range of sectors. The Group also has an
established presence in the expanding Indian market through its 50/50 joint
venture partnership with JSW Steel (India's largest steel producer).

 

Inside information

This announcement contains inside information as stipulated under the Market
Abuse Regulation (EU) No.596/2014 (as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018) and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations. On the publication of this announcement via a Regulatory
Information Service, such information is now considered to be in the public
domain. The person responsible for arranging for the release of this
announcement on behalf of Severfield is Adam Semple, Chief Financial Officer.

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