Global steel giant ArcelorMittal will pay $542 million (1.708 billion pesos) to
acquire an additional 34.7 per cent stake in Acindar Industria Argentina de Aceros
SA, Argentina''s second-biggest steelmaker.
said it would offer 5.75 pesos per Acindar share, a 19.5 per cent premium to Acindar''s
closing stock price on October 1, to take control of the company.
offer, made by ArcelorMittal subsidiary ArcelorMittal Spain, should commence within
four months, subject to regulatory approval.
offer would be conditional on the majority of Acindar shares being tendered, and
ArcelorMittal eventually holding at least 90 per cent of the Argentine company''s
currently owns a 65.3 per cent stake in Acindar.
offer is designed to help ArcelorMittal strengthen its position in Argentina and
reinforce its commitment to enhancing its business in the country," the company
said in a statement.
is in the process of completing a $150 million capital programme to raise capacity
to 1.7 million tonnes.
Morgan is acting as exclusive arranger and dealer-manager for ArcelorMittal while
Bruchou, Fernandez Madero & Lombardi is the legal adviser.
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