New Delhi: The world’s largest steel maker, ArcelorMittal, on Thursday said it would acquire additional 13.8% stake in its Czech arm ArcelorMittal Ostrava for $404.3 million (around Rs1,900 crore).
“ArcelorMittal...has signed an agreement to acquire a 13.881% 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 LN Mittal-led firm’s stake to about 96% in the subsidiary.
“ArcelorMittal will thus increase its stake in ArcelorMittal Ostrava to approximately 96.4% and PPF GROUP N V will step out of the Czech steelmaker’s shareholding structure,” the statement said.
ArcelorMittal currently holds 82.548% stake in the Czech firm.