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
Everyone knows that the Federal Reserve will raise interest rates next Wednesday at the conclusion of its two-day policy meeting. After all, Fed speakers have been jawboning a rate hike over the past few weeks. With the markets reacting with eerie calm to Donald Trump's win, policy makers have no... GOP strategist Karl Rove has criticized U.S. President-elect Donald Trump's comments on aircraft maker Boeing Co.'s contract for a new Air Force One plane, saying they were inaccurate and de-stabled the stock of a major company. Air Force One is the official air plane for the U.S. President. Elon Musk's space transport company SpaceX has lost a satellite launch order from one of its customers due to the delay in its rocket launch schedule after one of its rockets exploded in September.
comments powered by Disqus
Follow RTT