Beijing: World’s largest steel maker ArcelorMittal today said it may have to dilute its stake in Chinese steel firm China Oriental to meet the listing norms of Hong Kong Stock Exchange.
Lakshmi Mittal-led ArcelorMittal and partners currently hold 92.1% stake in the listed China Oriental, following the completion of general offer to the firm’s shareholders on 4 February.
However, Hong Kong Stock Exchange rules require 25% of the listed company’s shares to be held by the public.
In a joint filing to the Exchange today, the companies said, “ArcelorMittal will take appropriate steps to ensure that sufficient public float exists in the share as soon as practicable, which may include the sell down of its shareholding interest in the company.”
ArcelorMittal may also discuss with China Oriental at the relevant time whether or not the company would like to issue new shares for its own capital requirements, it added.
Prior to making the general offer on 14 December last year, ArcelorMittal was holding 73.13% of the issued share capital of China Oriental.