ArcelorMittal has sold part of its stake in French pipe manufacturer Vallourec, which amounts to approximately 23.9 million shares, representing about 10% of the issued share capital of the French pipe manufacturer, at a price of 24 euros (US$27.92) per share.
The sales amount to gross revenue of approximately $667 million and leaves ArcelorMittal with approximately 17.3% of Vallourec's shares. The steel company will retain one seat on the board of directors.
Prior to the sale of part of its stake, the steel company owned a significant 28.4% of the voting shares and 27.5% of the authorized capital of the pipe company. The acquisition of this stake was completed in August at a price of 14.64 euros per share, bringing the total purchase price to 955 million euros.
"By realizing value and returning the proceeds to shareholders through repurchase, we turn profitable investment results into immediate, tangible benefits.… This is another example of how we have consistently implemented our strategy in recent years – investing in high-profit opportunities to transform ArcelorMittal into a more sustainable and high-quality business capable of delivering stable returns to shareholders throughout the entire cycle." This is stated in a note from ArcelorMittal's chief financial officer, Gennino Kristino, obtained by Kallanish.
The note adds that ArcelorMittal supports Vallourec's strategy and leadership and continues to see value in the business.
Author: Natalia Kapra
Kallanish.com
