ArcelorMittal To Proceed with Spin-off of Stainless Steel Business
08 Dicembre 2010 - 8:03AM
Business Wire
Regulatory News:
Further to the announcement on 28 July 2010, the Board of
ArcelorMittal confirms that it has concluded the assessment of a
potential spin-off of the stainless steel business. Based on this
assessment, the Board has decided to proceed with the spin-off of
the stainless steel business which it believes will maximise value
for shareholders. Subject to shareholder approval, shares in the
stainless steel business will be distributed to shareholders in the
first quarter of 2011.
Shareholders will receive one stainless steel business share for
every twenty ArcelorMittal shares held on the record date.
Stainless steel business shares will be listed on Euronext Paris,
Amsterdam and in Luxembourg. In the United States, they will trade
on the over-the-counter market in the form of NY Registry Shares. A
prospectus describing the stainless steel business and transaction
will be published later this month.
The spinoff is expected to result in a non-cash impairment
charge of approximately $ 800 million as the stainless steel
business will be accounted for in accordance with IFRS 5 applicable
to assets held for distribution. The final impairment charge will
be assessed by ArcelorMittal and reviewed by its auditors as at
year end. Currency fluctuations and change in working capital are
the main factors that between now and year end may influence the
final impairment amount. No such impairment charge would be
expected had the stainless steel segment remained in the scope of
activities of ArcelorMittal.
Following the spin-off, the stainless steel business will have
approximately $1bn of net financial debt which will comprise a
combination of existing ArcelorMittal debt transferring with the
stainless steel business and new debt raised by this business. As a
result, the transaction is expected to be broadly neutral to
ArcelorMittal’s net debt to EBITDA leverage ratio.
The Stainless steel business shares have not been and will not
be registered with the US Securities and Exchange Commission or
listed on any national securities exchange in the United
States.
This document contains forward-looking information and
statements about ArcelorMittal and its subsidiaries. These
statements include financial projections and estimates, including
non-cash impairment charges, net financial debt and net debt to
EBITDA leverage ratio, statements regarding plans, objectives and
expectations with respect to future operations and statements
regarding future performance generally. Forward-looking statements
may be identified by the words “will,” “believe,” “expect” or
similar expressions. Although ArcelorMittal’s management believes
that the expectations reflected in such forward-looking statements
are reasonable, investors and holders of ArcelorMittal’s securities
are cautioned that forward-looking information and statements are
subject to numerous risks and uncertainties, many of which are
difficult to predict and generally beyond the control of
ArcelorMittal, that could cause actual results and developments to
differ materially and adversely from those expressed in, or implied
or projected by, the forward-looking information and statements.
These risks and uncertainties include those discussed or identified
in the filings with the Luxembourg Stock Market Authority for the
Financial Markets (Commission de Surveillance du Secteur Financier)
and the United States Securities and Exchange Commission (the
“SEC”) made or to be made by ArcelorMittal, including
ArcelorMittal’s Annual Report on Form 20-F for the year ended
December 31, 2009 filed with the SEC. ArcelorMittal undertakes no
obligation to publicly update its forward-looking statements,
whether as a result of new information, future events or
otherwise.
About ArcelorMittal
ArcelorMittal is the world's leading steel company, with
operations in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets,
including automotive, construction, household appliances and
packaging, with leading R&D and technology, as well as sizeable
captive supplies of raw materials and outstanding distribution
networks. With an industrial presence in over 20 countries spanning
four continents, the Company covers all of the key steel markets,
from emerging to mature.
Through its core values of sustainability, quality and
leadership, ArcelorMittal commits to operating in a responsible way
with respect to the health, safety and wellbeing of its employees,
contractors and the communities in which it operates. It is also
committed to the sustainable management of the environment and of
finite resources. ArcelorMittal recognises that it has a
significant responsibility to tackle the global climate change
challenge; it takes a leading role in the industry's efforts to
develop breakthrough steelmaking technologies and is actively
researching and developing steel-based technologies and solutions
that contribute to combat climate change.
In 2009, ArcelorMittal had revenues of $65.1 billion and crude
steel production of 73.2 million tonnes, representing approximately
8 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on
the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS).
For more information about ArcelorMittal visit:
www.arcelormittal.com
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