ArcelorMittal announced the completion of the sale of ArcelorMittal Temirtau, a Kazakh steel and mining company, to the state investment fund of the Republic of Kazakhstan, Qazaqstan Investment Corporation ("QIC").
ArcelorMittal and the government of Kazakhstan have been discussing the issue for several months on the sustainable development of an integrated steel asset located in the Karaganda region.
Under the terms of the transaction, ArcelorMittal received consideration at closing in the amount of US$286 million and an additional US$250 million as repayment of outstanding intercompany payments. ArcelorMittal will also receive an additional sovereign fund guaranteed payment of $450 million, payable in four equal annual installments as repayment of the intercompany loan.
All assets of ArcelorMittal Temirtau were transferred on an "as is" operating basis, meaning that QIC has now assumed control and responsibility for the operations of the ArcelorMittal Temirtau production facility, which will now be renamed.
ArcelorMittal has also made a donation of approximately US$35 million to the Kazakhstan Khalkina-oriented fund for projects in the field of healthcare and education in the Karaganda region.
Minister of Industry and Construction of Kazakhstan Kanat Sharlapaev at a government briefing said that Kazakh businessman Andrey Lavrentyev became the new investor of ArcelorMittal Temirtau. The new investor will take over everything obligations to resolve the company's short-term and long-term obligations, work with suppliers and employees, that is, all obligations are transferred to the new investor, the minister noted.
