ArcelorMittal has sold part of its stake in French pipemaker Vallourec, amounting to approximately 23.9 million shares, around 10% of the French tubular producer’s issued share capital, at €24 ($27.92) per share.
The sale amounts to gross proceeds of approximately $667 million and leaves ArcelorMittal with roughly a 17.3% stake in Vallourec. The steelmaker will maintain one seat on the board.
Before selling part of its share the steelmaker held a significant 28.4% of the voting rights and 27.5% of the share capital in the pipemaker. This stake was concluded in August at a price of €14.64/share, resulting in a total purchase price of €955m.
“By realising value and returning the proceeds to shareholders through buybacks, we are converting a strong investment outcome into immediate, tangible benefits… It is another example of how we have consistently executed our strategy in recent years – investing in high return opportunities to develop ArcelorMittal into a more resilient, higher quality business, capable of delivering sustainable value for shareholders through the cycle.” ArcelorMittal cfo Genuino Christino says in a note obtained by Kallanish.
The note adds that ArcelorMittal backs Vallourec’s strategy and management and continues to see value in the business.
