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Arcelor Mittal buys 14% stake in Czech arm for USD 404 mn

Last Updated: Thursday, November 12, 2009 - 23:19

New Delhi: The world`s largest steel maker,
ArcelorMittal, today said it would acquire additional 13.8 per
cent stake in its Czech arm ArcelorMittal Ostrava for USD
404.3 million (around Rs 1,900 crore).

"ArcelorMittal...has signed an agreement to acquire a
13.881 per cent stake in ArcelorMittal Ostrava from a
subsidiary of PPF GROUP, an international financial and
investment group in Central and Eastern Europe, for
approximately USD 404.3 million," the steel maker said in a
statement here.

The deal will be completed next year, when "the final
payment will be made," which will result in exit of the minor
shareholder from the company.

The transaction values the Czech firm, at an enterprise
value of about "USD 264 per tonne of liquid steel capacity."
ArcelorMittal Ostrava has a capacity to produce three million
tonnes of steel per annum.

The deal will take the NRI billionaire L N Mittal-led
firm`s stake to about 96 per cent in the subsidiary.

"ArcelorMittal will thus increase its stake in
ArcelorMittal Ostrava to approximately 96.4 per cent and PPF
GROUP N V will step out of the Czech steelmaker`s shareholding
structure," the statement said.

ArcelorMittal currently holds 82.548 per cent stake in
the Czech firm.

Bureau Report

First Published: Thursday, November 12, 2009 - 23:19
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