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 shareholdersThe Mittal family has committed to take up its pro-rata entitlement corresponding to approximately US$1.1 billionArcelorMittal 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 conditions.
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.