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US$3.0 billion capital raise
- US$1.0 billion from sale of Gestamp
- Pro forma net debt below US$12 billion
Luxembourg, 5 February, 2016
- ArcelorMittal (the “Company”) today
announces a proposed
capital raise of US$3.0
billion which, alongside the sale of its minority stake in Gestamp for
approximately US$1 billion also announced today, would reduce pro forma net
debt as of 31 December 2015 by US$4 billion to below US$12 billion.
The Company separately announces today a
five-year strategic roadmap, the ArcelorMittal Action 2020 plan, which sets out
improvement plans for each of its five business segments and aims to improve
Ebitda and free cash flow performance.
Features of the c.US$3.0 billion share
capital increase, expected to be completed in H1 2016, include:
Capital increase by way of a
rights issue for ArcelorMittal shareholders
- The Mittal family has committed
to take up its pro-rata entitlement corresponding to approximately US$1.1
- ArcelorMittal has entered into a
standby underwriting commitment with Goldman Sachs International, BofA Merrill
Lynch and Crédit Agricole Corporate and Investment Bank, acting as Joint Global
Coordinators, pursuant to which the Joint Global Coordinators undertook to
underwrite the capital increase for the remaining amount, subject to customary
Additionally the Company will receive
approximately US$1 billion from today’s separately announced sale of its 35%
shareholding in Gestamp which is expected to be closed by the end of June
2016. ArcelorMittal will continue its supply relationship with Gestamp through
its 35% shareholding in Gonvarri, a sister company of Gestamp.
Assuming completion of the rights issue
and factoring in the Gestamp sale proceeds, the Company’s net debt at 31
December 2015 would be less than $12bn representing 2.2x 2015 Ebitda.
Mr. Lakshmi Mittal, chairman and CEO of
“This capital raise, combined with the
sale of our minority shareholding in Gestamp, will accelerate the company’s
debt reduction plans and enable us to reduce net debt to less than US$12
billion. This will help ensure that the business is resilient in any
market environment and puts ArcelorMittal in a position of strength from which
to further improve performance.
“The Company had already announced plans
to reduce the cash requirements of the business and improve Ebitda in 2016. A
more detailed long-term strategic review has now been completed, setting out
the performance improvement potential for the five year period to 2020.
“Looking ahead it is clear that those
steel companies with a combination of the right assets, the right strategy and
the right balance sheet will prosper. We are confident ArcelorMittal has this
combination and that we are in a strong position to deliver on the targets identified
and cement our position as the world’s leading steel company.”
The Board of Directors has proposed that
an Extraordinary General Meeting will be held to pass the resolutions necessary
for the capital increase. The exact date, expected to be in the first half of
March, will be confirmed in due course. Further details can be found in the
presentation published on the Company’s website
ArcelorMittal management will host a conference call for members of the investment community to discuss these strategic initiatives on:
US Eastern time
Friday February 5, 2016
The dial in numbers:
Toll free dial in numbers
Local dial in numbers
0800 051 5931
+44 (0)203 364 5807
+33 1 7071 2916
0800 965 6288
+49 692 7134 0801
90 099 4930
+34 911 143436
+352 27 86 05 07
1 866 7192 729
+1 240 6450345
There will be an accompanying
presentation via a live video webcast that can be accessed here.
This press release may contain forward-looking information and
statements about ArcelorMittal and its subsidiaries. These statements include
financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements may be identified by the words “believe,” “expect,”
“anticipate,” “target” or
Although ArcelorMittal’s management believes that the expectations reflected in
such forward-looking statements are reasonable, investors and holders of
ArcelorMittal’s securities are cautioned that forward-looking information and
statements are subject to numerous risks and uncertainties, many of which are
difficult to predict and generally beyond the control of ArcelorMittal, that
could cause actual results and developments to differ materially and adversely
from those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include those
discussed or identified in the filings with the Luxembourg supervisory
authority for the financial sector (Commission de Surveillance du Secteur
– CSSF) and the United States Securities and Exchange Commission
(the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s
latest Annual Report on Form 20-F filed with the SEC, ArcelorMittal undertakes
no obligation to publicly update its forward-looking statements, whether as a
result of new information, future events, or otherwise.
For readers in the European Economic Area
This press release does not constitute an
offer to sell, or the solicitation of an offer to buy or subscribe for, any
securities of ArcelorMittal within the meaning of Luxembourg law and/or the
laws of any other member state of the European Economic Area. This document
does not constitute a prospectus within the meaning of EC Directive 2003/71/EC
of the European Parliament and of the Council dated 4 November 2003, as amended
(the “Prospectus Directive”), which expression includes any relevant
implementing measure in the member state concerned, and should not be the basis
for any agreement or decision to invest. The Company has not made any final
decision whether to proceed with any offering of securities or to admit new
securities to trading on a regulated market. Any such offering or new admission
will be based exclusively on a prospectus prepared for that purpose. Further,
ArcelorMittal has not authorized any offer to the public of securities in any
member state of the European Economic Area that has implemented the Prospectus
Directive, other than Luxembourg, the Netherlands, France and Spain, (each, a
“Relevant Member State”). With respect to each Relevant Member State, no action
has been undertaken or will be undertaken to make an offer to the public of
securities requiring publication of a prospectus in any Relevant Member State.
Should an offering or new admission of subscription rights and new shares be
conducted, as is currently planned, in Luxembourg, the Netherlands, France and
Spain, a securities prospectus will be produced, which is to be published
following its approval by the Luxembourg supervisory authority for the
financial sector (
Commission de Surveillance du Secteur Financier
CSSF) and after it has been passported into the Netherlands, France and Spain
subsequent to notification having been given to the competent regulatory
authorities in those jurisdictions. Any decision to purchase, subscribe for or
otherwise acquire any subscription rights or new shares of the Company must be
made only on the basis of the information in a securities prospectus (if
published in due course by the Company), which will then be available for
download on the internet site of ArcelorMittal (www.arcelormittal.com). Copies
of the prospectus will then also be readily available upon request and free of
charge at 24-26, boulevard d’Avranches, L-1160 Luxembourg, Grand-Duchy of Luxembourg.
In each Relevant Member State this communication is only addressed
to, and directed at, qualified investors in that Relevant Member State within
the meaning of the Prospectus Directive.
This press release contains regulated information within the
meaning of the Transparency Directive 2004/109/EC and implementing laws and
regulations, which must be made publicly available pursuant to Luxembourg law.
This press release contains advertising materials in connection
with the Offer as referred to in the Market Abuse Directive 2003/6/EC and
implementing laws and regulations.
For readers in the United Kingdom
This communication is only being distributed to, and is only
directed at, (i) persons who are outside the United Kingdom or (ii) investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high
net worth companies, and other persons to whom it may lawfully be communicated,
falling within Article 49(2)(a) to (d) of the Order (all such persons together
being referred to as “relevant persons”). The subscription rights and new
shares are only available to, and any invitation, offer or agreement to
subscribe for, purchase or otherwise acquire such subscription rights or new
shares will be engaged in only with, relevant persons. Any person who is not a
relevant person should not act or rely on this document or any of its contents.
For readers in the United States
ArcelorMittal has filed a registration statement (including a
prospectus) with the United States Securities and Exchange Commission (the
“SEC”) for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement, the supplement
to that prospectus ArcelorMittal expects to file with the SEC and other
documents ArcelorMittal has filed and will file with the SEC for more complete
information about ArcelorMittal and this offering. You may get these documents,
once filed, free of charge by visiting EDGAR on the SEC Web site at
www.sec.gov. Alternatively, ArcelorMittal, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus after
filing if you request it by writing or telephoning ArcelorMittal at ArcelorMittal
USA LLC, 1 South Dearborn Street, 19th Floor, Chicago, IL 60603, Attention: Ms.
Lisa M. Fortuna, Manager, Investor Relations, telephone number: (312) 899-3985.
Subject to shareholder approval. An extraordinary general meeting
of shareholders will be called in this respect.
As the subscription price will be denominated in euros, the capital
increase amount will correspond to the euro equivalent of $3 billion upon the
rights offering launch. The actual amount of the capital increase in USD will
depend on f/x at closing.
Structured as non-statutory preferential subscription rights.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate. For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.
In 2015, ArcelorMittal had revenues of US$63.6 billion and crude steel production of 92.5 million tonnes, while own iron ore production reached 62.8 million tonnes. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/