September 07, 2008

ArcelorMittal launches buyout for ArcelorMittal Inox Brazil

ArcelorMittal announced its intention to launch a de listing cash offer to acquire the 43% outstanding shares in ArcelorMittal Inox Brazil SA it does not currently own. ArcelorMittal currently owns a 57% stake in ArcelorMittal Inox Brazil.

ArcelorMittal said that the price for the offer should be BRR 100 per common share and BRR 100 per preferred share of ArcelorMittal Inox Brasil, representing a premium of approximately 22% to the 60 day average preferred share market price. Payment for the shares tendered in the Offer shall be made in cash payment and adjusted in connection with any dividends paid by ArcelorMittal Inox Brasil between now and the date of the physical settlement of the Offer.

The steelmaker, which intends to delist the company, said a group of shareholders owning 157,300 common shares and 7.91 million preferred shares had already committed to sell. The offer's launch must be approved by Brazilian financial markets regulator CVM.

Mr LN Mittal president & CEO of ArcelorMittal said that “This tender is strategically beneficial to ArcelorMittal because it not only reinforces our position in the high growth area of Latin America, but it also strengthens our position in silicon steel, ferritics and specialty stainless steel.”