Arcelor to acquire 20% indirect stake in Erdemir

Arcelor to acquire 20% indirect stake in Erdemir

The Privatization Administration announced that it approved sale of a 41 percent stake in Ataer Holding, which was built by Oyak Group for Erdemir, to Luxembourg-based steel giant Arcelor. Following the completion of the share transfer, Arcelor will hold a 20 percent stake in Erdemir and Oyak will hold a 29.3 percent stake in Erdemir. As previously reported by SteelOrbis, on October 4, 2005, Oyak Group won the block sale tender by offering $2.77 billion for 46.12 percent of Erdemir. Together with the 3.17 percent stake of Turkish Development Bank to be sold at the same price, total stake to be sold increased to 49.3 percent. Accordingly, Arcelor will pay $1.21 billion for a 20 percent stake in Erdemir, while Oyak Group will pay $1.75 billion for a 29.3 percent stake.