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ArcelorMittal Launches Offer for ArcelorMittal Inox Brasil
03/06/2008 - ArcelorMittal has launched its delisting tender offer for all of the outstanding shares in Arcelor Mittal Inox Brasil SA, which was formerly known as Acesita SA.
ArcelorMittal has launched its delisting tender offer for all of the outstanding shares in Arcelor Mittal Inox Brasil SA (formerly known as Acesita SA).
The offer is being made pursuant to the tender offer registration granted by the Comissão de Valores Mobiliários (CVM), the Brazilian securities regulator, on March 3, 2008. The Offer will remain open for 30 calendar days and will be settled through an auction at the São Paulo Stock Exchange on April 4, 2008.
This transaction will result in ArcelorMittal acquiring the 43% outstanding company shares that it does not currently own.
The price offered by ArcelorMittal is R$ 100.00 per common share and R$ 100.00 per preferred share. The price will be adjusted to subtract the dividends and interest on equity declared by the company from December 4th, 2007 through the business day prior to the auction date. This value currently (as of March 5) corresponds to R$98.33 per common share and R$98.17 per preferred share, subject to adjustment by the Referential Rate – TR plus 6% per year, starting February 28th, 2008 through to the auction date. At the current exchange rate, this transaction represents a cash disbursement of up to around USD 1.85 billion.
As of today, a group of shareholders led by Tarpon Investments, which owns 157,300 common shares and 7,914,147 preferred shares, and BNDESPAR, which owns 12.707.827 preferred shares, have irrevocably committed to ArcelorMittal to sell their shares of ArcelorMittal Inox Brasil in the Offer.
The company notes that this announcement does not constitute an offer to acquire company securities in any jurisdiction, and that any offer that may be made would be made to all holders of shares of the Company located in Brazil.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads major global 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. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key pro forma financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
