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ArcelorMittal Acquires Additional Stake in ArcelorMittal Ostrava, a.s.

11/16/2009 - ArcelorMittal signs an agreement to acquire a 13.881% stake in ArcelorMittal Ostrava, a.s. from a subsidiary of PPF Group N.V., increasing its stake in the Czech steelmaker to approximately 96.4%.

ArcelorMittal has signed an agreement to acquire a 13.881% stake in ArcelorMittal Ostrava, a.s. from a subsidiary of PPF Group N.V. for CZK 6,879,524,000 (about USD 404.3 million). This values ArcelorMittal Ostrava, a.s. at an Enterprise Value of about USD 264 per tonne of liquid steel capacity.
 
The final payment will be made in 2010.
 
ArcelorMittal’s stake in ArcelorMittal Ostrava, a.s. will increase to approximately 96.4% and PPF Group N.V., an international financial and investment group in Central and Eastern Europe, will step out of the Czech steelmaker’s shareholding structure.
 
The company notes that this agreement is consistent with its commitment to continue as one of the largest foreign investors in the Czech Republic.
 
With operations in more than 60 countries, ArcelorMittal is a leader in all major global steel markets, including automotive, construction, household appliances, and packaging, with sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in more than 20 countries spanning four continents, the company covers all of the key steel markets, from emerging to mature. In 2008, ArcelorMittal had revenues of $124.9 billion and crude steel production of 103.3 million tonnes, representing about 10% of world steel output.