ArcelorMittal to Sell Up to 25% of Stake in Turkish Steelmaker Erdemir

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The world's largest steelmaker, ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg), said that it intends to sell up to half of its 25% stake in Turkish steel producer Eregli Demir Celik (ISE:EREGL) (Zonguldak, Turkey), or Erdemir, to institutional investors in order to focus on its core assets.

ArcelorMittal currently more than 537 million shares in Erdemir, representing approximately 25% of Erdemir's share capital. Following completion of the transaction, ArcelorMittal is expected to hold approximately 18.7% of Erdemir's share capital, decreasing to approximately 12.5% if all of the warrants are exercised. The transactions will be made within 14 days of the settlement date.

"Erdemir is a strong business with excellent prospects," said Aditya Mittal, chief financial officer and member of the Group Management Board for ArcelorMittal, in a written statement. "However, our stake has always been non-core, as we have never exercised any control. So this decision is very much in line with our declared group strategy of focusing on core assets and reducing net debt. This transaction will improve Erdemir's liquidity and attract a wider range of investors."

Lakshmi Mittal, the Indian billionaire, created ArcelorMittal in 2006 from a 26.9 billion-euro takeover of Luxembourg-based Arcelor. The merged company, ArcelorMittal, became a global leader in the steelmaking business, with 91.9 million tons of steel output in 2011. Its revenues rose by 20% last year to $94 billion.

ArcelorMittal lifted its stake in Erdemir in 2008, and bought 11.3% of the company for $869 million. After the operation, ArcelorMittal's stake in Erdemir reached 25%, and Erdemir's equity market value increased to $7.7 billion.

Erdemir has reported a 31% increase in profit for the 2011 fiscal year and posted a record profit of $567 million in February 2011. Erdemir's sales jumped 34% to $5.33 billion in 2011. For more information, see February 20, 2012, article - Turkey's Leading Steel Producer Eregli Demir Celik Posts Record Profit for 2011.

In 2011, Erdemir produced 6.9 million tons of steel, which accounted 22% of Turkey's steel production.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.