ArcelorMittal to buy 14% stake in Czech arm

The world's largest steel maker, ArcelorMittal, on Thursday said it would acquire additional 13.8 per cent stake in its Czech arm ArcelorMittal Ostrava for $404.3 million (around Rs 1,900 crore).

"ArcelorMittal has signed an agreement to acquire a 13.881 per cent stake in ArcelorMittal Ostrava from a subsidiary of PPF Group, an international financial and investment group in Central and Eastern Europe, for approximately $404.3 million," the steel maker said in a statement.

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 "$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 L N Mittal-led firm's stake to about 96 per cent in the subsidiary.

"ArcelorMittal will thus increase its stake in ArcelorMittal Ostrava to approximately 96.4 per cent and PPF Group N V will step out of the Czech steelmaker's shareholding structure," the statement said. ArcelorMittal currently holds 82.548 per cent stake in the Czech firm.