By Alex MacDonald
LONDON--Steel titan ArcelorMittal (MT) said Tuesday it has sold
another stake in Turkey's largest flat steel producer, reflecting
the company's previously stated strategy of selling non-core assets
to reduce its debt.
ArcelorMittal sold a 6.66% stake or 233 million shares in Eregli
Demir ve Celik Fabrikalar T.A.S. (EREGLI.IS), or Erdemir, to
institutional investors for about $267 million in cash. This
follows a similar sale in March 2012 when the company sold about
134 million shares or a 6.25% stake, in Erdemir for $264 million,
according to the company's 20-F annual report filing in the
U.S.
The world's largest steelmaker has permanently shut down some of
its loss-making production capacity in Europe due to protracted
weak steel demand and has sold assets in order to reduce its net
debt. The Luxembourg-based steelmaker is currently seeking to
reduce its net debt to $15 billion in the medium term after cutting
its net debt to $16.2 billion at the end of June from $21.8 billion
at the end of December.
As part of the latest Erdemir stake sale, ArcelorMittal has
agreed not to sell any further Erdemir shares for 180 days.
Citigroup Inc. (C) acted as the sole bookrunner in the Erdemir
share offering to institutional investors.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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