logo
Share SHARE
FONT-SIZE Plus   Neg

ArcelorMittal To Reduce Stake In Turkish Steelmaker Erdemir

Steel giant ArcelorMittal (MT: Quote) 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
Google plans to launch a limited-scale U.S. wireless service, which while not taking on the big players in the industry, would nonetheless incorporate technical innovations that could be absorbed the carriers. This was announced by Sundar Pichai, a top Google executive, at the ongoing World Mobile Congress in Barcelona. Consumers used to steep discount on gas are seeing an increase in the price of the fuel in the past few weeks, accentuated by a surge in California, with refinery maintenance and unexpected events acting as catalysts. The price increase comes amid a globally volatile scenario where supply continues to exceed demand, and U.S. energy companies rethink their exploration and production strategy. Trading of Lumber Liquidators Holdings Inc. (LL) was halted on Monday after its stock tanked 20 percent on a TV show, which claimed the company sold flooring that may not meet safety and health standards. According to the TV interview program "60 Minutes" on CBS, Lumber Liquidators sold flooring manufactured...
comments powered by Disqus
RELATED NEWS
Trade MT now with 
Follow RTT