ArcelorMittal S Africa Plans to Raise Up to $327 Million Via Equity Issue
06 November 2015 - 9:21AM
Dow Jones News
By Alex MacDonald
LONDON--ArcelorMittal South Africa Ltd (ACL.JO) said Friday it
plans to raise between 4 billion to 4.5 billion South African rand
($287 million to $323 million) via an equity issue in order to pay
down debt and fund its capital expenditure.
South Africa's largest steelmaker, which is 47% owned by
Luxembourg-based ArcelorMittal (MT), is restructuring its
operations after suffering four consecutive years of net losses and
suffering a decline in local steel consumption over the past two
years.
The company has been hit by cheap steel imports as China--the
world's largest steel-producing nation--continues to ramp up
steel-production capacity amid waning domestic demand at home, and
subdued steel demand globally. Meanwhile labor and energy costs in
South Africa have risen above inflation rates over the past few
years.
The parent company ArcelorMittal said it will fully underwrite
the share issue. The company plans to issue more details about the
rights issue in January before being put to a shareholder vote.
Write to Alex MacDonald at alex.macdonald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 06, 2015 03:06 ET (08:06 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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