On Thursday, November 12, Luxembourg-based steel giant ArcelorMittal announced that it has signed an agreement to acquire a 13.881 percent stake in Czech steelmaker ArcelorMittal Ostrava, a.s. from a subsidiary of PPF GROUP N.V., an international financial and investment group operating in Central and Eastern Europe, for CZK 6.88 billion (approximately $404.3 million).
This values ArcelorMittal Ostrava, a.s. at an enterprise value of approximately $264 per metric ton of liquid steel capacity. The final payment will be made in 2010.
ArcelorMittal will thus increase its stake in ArcelorMittal Ostrava, a.s. to approximately 96.4 percent, with PPF GROUP N.V. stepping out of the Czech steelmaker's shareholding structure.
This agreement is consistent with ArcelorMittal's commitment to continue as one of the largest foreign investors in the Czech Republic, said ArcelorMittal in its statement.