MT ArcelorMittal

TIDMMT 
 
 
   Essar Steel's Committee of Creditors approves ArcelorMittal's 
acquisition of Essar Steel 
 
   26 October 2018 -- ArcelorMittal ('the Company') announces Essar Steel 
India Limited's ('ESIL') Committee of Creditors ('CoC') has voted to 
approve the Company's acquisition of ESIL. ESIL's Resolution 
Professional, on behalf of the CoC, has issued the Company with a Letter 
of Intent ('LOI') stating that the Company has been identified as the 
'Successful Applicant'. 
 
   Further to ArcelorMittal being named the H1 Resolution Applicant (the 
preferred bidder) on 19 October 2018, ESIL's CoC has now approved the 
Company's Resolution Plan for ESIL, with the LOI identifying it as the 
'Successful Resolution Plan'. The Resolution Plan includes an upfront 
payment of 42,000 crore rupees (*c. $5.7 billion) towards ESIL's 
resolution debt, with a further 8,000 crore rupees (*c. $1.1 billion) of 
capital injection into ESIL to support operational improvement, increase 
production levels and deliver enhanced levels of profitability. 
 
   ESIL is an integrated flat steel producer, and the largest steel company 
in western India. Its current level of annualised crude steel production 
is c. 6.5 million tonnes. ESIL also has iron ore pellet facilities in 
the east of India, with current annual capacity of 14 million tonnes per 
annum. ArcelorMittal's Resolution Plan details: 
 
 
   -- The Company's intention to increase ESIL's finished steel shipments to 
      8.5 million tonnes over the medium-term. This will be achieved by 
      initially completing ongoing capital expenditure projects and infusing 
      expertise and best practice to deliver efficiency gains, and then through 
      the commissioning of additional assets, while simultaneously improving 
      product quality and grades to realise better margins; 
 
   -- A long-term aspiration to increase finished steel shipments to between 12 
      and 15 million tonnes through the addition of new iron and steelmaking 
      assets, in order that ESIL can play an active role and fully benefit from 
      the anticipated growth in the Indian steel industry. 
 
 
   In-line with ESIL's corporate insolvency process, the Company's 
Resolution Plan must now be formally accepted by India's National 
Company Law Tribunal ('NCLT') before completion, which is expected 
before the end of 2018. 
 
   After completion, ArcelorMittal will jointly own and operate ESIL in 
partnership with Nippon Steel & Sumitomo Metal Corporation ('NSSMC'), 
Japan's largest steel producer and the third largest steel producer in 
the world, in-line with the joint venture formation agreement signed 
with NSSMC on 2 March 2018. ArcelorMittal and NSSMC expect to finance 
the joint venture through a combination of partnership equity 
(one-third) and debt (two-thirds), and ArcelorMittal anticipates that 
its investment in the joint venture will be equity accounted. 
 
   *at 73.2 Indian rupees / $1 
 
   ENDS 
 
   About ArcelorMittal 
 
   ArcelorMittal is the world's leading steel and mining company, with a 
presence in 60 countries and an industrial footprint in 18 countries. 
Guided by a philosophy to produce safe, sustainable steel, we are the 
leading supplier of quality steel in the major global steel markets 
including automotive, construction, household appliances and packaging, 
with world-class research and development and outstanding distribution 
networks. 
 
   Through our core values of sustainability, quality and leadership, we 
operate responsibly with respect to the health, safety and wellbeing of 
our employees, contractors and the communities in which we operate. 
 
   For us, steel is the fabric of life, as it is at the heart of the modern 
world from railways to cars and washing machines. We are actively 
researching and producing steel-based technologies and solutions that 
make many of the products and components people use in their everyday 
lives more energy efficient. 
 
   We are one of the world's five largest producers of iron ore and 
metallurgical coal. With a geographically diversified portfolio of iron 
ore and coal assets, we are strategically positioned to serve our 
network of steel plants and the external global market. While our steel 
operations are important customers, our supply to the external market is 
increasing as we grow. 
 
   In 2017, ArcelorMittal had revenues of $68.7 billion and crude steel 
production of 93.1 million metric tonnes, while own iron ore production 
reached 57.4 million metric tonnes. 
 
   ArcelorMittal is listed on the stock exchanges of New York (MT), 
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock 
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). 
 
   For more information about ArcelorMittal please visit: 
http://corporate.arcelormittal.com/ 
 
 
 
 
 
Contact information ArcelorMittal 
 Investor Relations 
 
Europe                                                                      +44 20 7543 1156 
Americas                                                                     +1 312 899 3985 
Retail                                                                      +44 20 7543 1156 
SRI                                                                          +44 207543 1156 
Bonds/Credit                                                                 +33 171 921 026 
 
 
Contact information ArcelorMittal 
 Corporate Communications 
 
  E-mail:                             mailto:press@arcelormittal.com press@arcelormittal.com 
                                    -------------------------------------------------------- 
Phone:                                                                         +442076297988 
 
 
ArcelorMittal Corporate 
 Communications 
 
Paul Weigh                                                                  +44 20 3214 2419 
 
India - Brunswick 
 Khozem Merchant / Azhar              +91 9167883290 
 Khan 
 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

October 26, 2018 03:04 ET (07:04 GMT)

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