logo
Share SHARE
FONT-SIZE Plus   Neg

ArcelorMittal To Reduce Stake In Turkish Steelmaker Erdemir

Steel giant ArcelorMittal (MT) said Tuesday that it plans to sell up to half of its 25 percent stake in Turkey's biggest steelmaker Demir ve Çelik Fabrikalari T.A.S., or Erdemir. The sale is part of the company's efforts to focus on core assets and reduce its net debt.

Luxembourg-based ArcelorMittal plans to sell a package of 134.32 million shares and issue warrants in respect of another 134.32 million shares by way of a single accelerated bookbuilt offering to institutional investors. Goldman Sachs International (GS) is the sole bookrunner on the sale. ArcelorMittal currently owns 537.27 million shares in Erdemir, representing about 25 percent of Erdemir's share capital. The sale will reduce ArcelorMittal's stake in Erdemir to about 18.7 percent, and further to about 12.5 percent if all of the warrants are exercised.

The company said that investors will be offered an equal number of shares and warrants. For every three shares purchased, investors will receive one warrant each of Series A, B and C. The warrants will be transferable and freely tradable from the settlement date of the transaction.

Aditya Mittal, CFO and member of the Group Management Board for ArcelorMittal, said, "Erdemir is a strong business with excellent prospects. However, our stake has always been non-core as we have never exercised any control. So this decision is very much in line with our declared Group strategy of focusing on core assets and reducing net debt."

ArcelorMittal has agreed to a one-year lock up that prevents it from selling its remaining stake in Erdemir.

In early February, ArcelorMittal reported a wider loss for the fourth quarter, reflecting a large income tax expense recorded in the period. MT closed Tuesday's trading at $19.47, down $0.38 or 1.91 percent on a volume of 4.79 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Media and entertainment giant Walt Disney Co. said Tuesday that Christine McCarthy, the company's Treasurer for the past 15 years, will succeed James Rasulo as Chief Financial Officer. A blast at the Al-Imam al-Sadeq mosque in Kuwaiti capital killed eight people. Several people were wounded in the explosion, probably a suicide bombing, after the Friday prayers. Many are said to be in critical condition. One was killed in a probable ISIS attack at U.S. based Air products and Chemicals' industrial site in France. According to media reports, a car disguised as a delivery vehicle was rammed into Air product site in Schiltigheim, Southeast France. Police arrested a young man of around 30 years old, who is suspected to have connections with Islamic State.
comments powered by Disqus
RELATED NEWS
Trade MT now with 
Follow RTT