ArcelorMittal raises $667 million from Vallourec stake sale
ArcelorMittal's Strategic Share Sale in Vallourec
Overview of the Transaction
May 19 (Reuters) - ArcelorMittal has raised about $667 million (573 million euros) from a secondary share sale of a 10% stake in French steel tubes maker Vallourec, the world's second-largest steelmaker said on Tuesday.
Background and Market Impact
ArcelorMittal's Initial Investment
The Luxembourg-based group bought a 28.4% equity stake in Vallourec in March 2024, when Vallourec's shares were trading at around 16 euros, giving it a market value of 3.3 billion euros. That has since jumped by 75% to roughly 6 billion euros.
Key Details of the Share Sale
- ArcelorMittal sold 23.9 million shares in Vallourec for 24 euros apiece
- That represents a discount of nearly 8% to Monday's closing price of 26 euros
Company Statements and Future Plans
- The steelmaker remains supportive of Vallourec's strategy and management, it said in a statement
- ArcelorMittal will retain a 17.3% stake after the deal
Market Reaction
- Shares in Vallourec fell about 9% in early Paris trading
Additional Information
(1 euro = $1.1640)
(Reporting by Gianluca Lo Nostro; Editing by Bernadette Baum and Milla Nissi-Prussak)
