ArcelorMittal Hunedoara, Romania-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal, will consult its shareholders on whether to increase its share capital or dissolve the company, after its net asset value dipped below the legally allowed threshold, i.e., below half of its share capital value, following losses of RON 222.56 million (about $65.4 million) registered in 2009, according to the statement submitted by the company to Bucharest Stock Exchange.
Accordingly, the capital increase transaction involves the company seeking a RON 397.65 million ($117 million) share issue to raise net assets and to fund its operations and satisfy its creditors. ArcelorMittal would have to supplement Hunedoara's capital by an amount of about $103 million, as it holds 88 percent of the plant's shares.
The proposals are on the agenda of the extraordinary meeting of ArcelorMittal Hunedoara's shareholders scheduled for July 23.
Currently, an important investment of €43 million is being implemented at ArcelorMittal Hunedoara for the construction of a new rolling mill to be finished next year, aimed at almost doubling the plant's annual production capacity to 700,000 mt of steel per year.