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MTS - ArcelorMittal SA News Story

€27.04 -0.5  -2.0%

Last Trade - 11/05/21

Sector
Basic Materials
Size
Large Cap
Market Cap £25.65bn
Enterprise Value £31.23bn
Revenue £38.68bn
Position in Universe 11th / 725

BRIEF-ArcelorMittal led consortium reaches agreement regarding Ilva lease and purchase agreement

Fri 16th June, 2017 4:04pm
June 16 (Reuters) - ARCELORMITTAL SA  MT.AS : 
    * INVESTCO ITALY SRL HAS CONCLUDED EXCLUSIVE NEGOTIATION PHASE AND REACHED BINDING AGREEMENT 
CONCERNING LEASE AND OBLIGATION TO PURCHASE ILVA S.P.A AND ITS SUBSIDIARIES WITH ITALIAN 
GOVERNMENT 
    * IDENTIFIED SYNERGIES OF EUR 310 MILLION TARGETED BY 2020 
    * PURCHASE PRICE OF EUR 1.8 BILLION, WITH ANNUAL LEASING COSTS OF EUR 180 MILLION TO BE PAID 
IN QUARTERLY INSTALLMENTS 
    * START OF LEASE EXPECTED AROUND YEAR-END 2017 
    * LEASE PERIOD TO BE MINIMUM OF TWO YEARS 
    * INVESTMENTS OF C. EUR 2.4 BILLION (C. EUR 2.1 BILLION NET OF RIVA GROUP CONTRIBUTION) OVER 
A SEVEN-YEAR PERIOD 
    * ILVA EXPECTED TO BE EBITDA ACCRETIVE TO ARCELORMITTAL IN YEAR ONE, AND FREE CASH FLOW 
ACCRETIVE IN YEAR THREE 
    * INTESA SANPAOLO WILL FORMALLY JOIN CONSORTIUM BEFORE TRANSACTION CLOSING 
    * FINISHED STEEL SHIPMENTS TO SYSTEMATICALLY INCREASE TO 9.5 MILLION TONNES, BY 2023 
    * EUR 10 MILLION START-UP INVESTMENT IN NEW RESEARCH AND DEVELOPMENT (RESEARCH AND 
DEVELOPMENT) CENTRE IN TARANTO 
    * ASSETS WILL BE TRANSFERRED TO AM INVESTCO FREE OF LONG TERM LIABILITIES AND FINANCIAL DEBT 
AND INCLUDES EUR 1 BILLION OF NET WORKING CAPITAL 
 
Source text for Eikon:  ID:nGNE7cXfDv  
Further company coverage:  MT.AS  
 
 (Gdynia Newsroom) 
 ((Gdynia.newsroom@thomsonreuters.com; +48 58 772 0920;))
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