ArcelorMittal Reduces Stake in Dillinger Hütte
12/16/2008 - ArcelorMittal will sell off a portion of its shares in Dillinger Hütte, reducing its economic and voting interest in the company from 51.25% to 33.4%.
ArcelorMittal has entered into binding agreements to sell off a portion of its shares in Dillinger Hütte to Struktur-Holding-Stahl GmbH & Co. KG aA and Dillinger Hütte Saarstahl AG. The sale will reduce ArcelorMittal’s economic and voting interest in Dillinger Hütte from 51.25% to 33.4%.
With the sale, ArcelorMittal ends its pursuit of controlling interest in Saarland, Germany, based Dillinger Hütte. One of Europe’s leading plate mills, Dillinger Hütte sells the bulk of its production to the energy sector. In 2007, the company shipped approximately 2.3 million tonnes of heavy plate.
“We have chosen to optimize our stake in Dillinger Hütte in order to bring our economic and voting rights in-line with our existing governance rights in the company,” commented Michel Wurth, member of ArcelorMittal Group Management Board. “We will continue to be a key industrial partner to Dillinger Hütte.”
Combined proceeds from the transaction, comprising sale of shares and the dividend proposed for the year 2008, amount to Euro 777 million (US$ 1 billion). The sale price corresponds to an estimated total enterprise value of the company of US$ 2.6 billion.
ArcelorMittal is the world's largest steel company, with over 326,000 employees in more than 60 countries. It leads a number of 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 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 sustainable management of the environment and of finite resources. ArcelorMittal recognizes 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 2007, ArcelorMittal had revenues of $105.2 billion and crude steel production of 116 million tonnes, representing around 10% of world steel output.
Dillinger Hütte, one of Europe’s leading plate mills, currently employs 5,230 staff. In 2007, the company shipped approximately 2.3 million tonnes of heavy plate.
