Global steelmaker ArcelorMittal has announced that its subsidiary ArcelorMittal North America Holdings LLC has reached an agreement to sell 40 million Cleveland-Cliffs common shares through a fully underwritten public market offering.
The proceeds from the sale of Cleveland-Cliffs common shares will be used for a new share buyback program of ArcelorMittal common shares. Following the sale, ArcelorMittal North America will continue to hold approximately 38 million common shares in addition to shares of non-voting preferred stock redeemable at Cleveland-Cliffs’ option for an equivalent value of approximately 58 million common shares.
ArcelorMittal received $505 million cash and 78 million shares of Cleveland-Cliffs common stock in December last year, as SteelOrbis previously reported.