LNM to lift shares in Iscor to 52% by end of 2004

LNM to lift shares in Iscor to 52% by end of 2004

According to recent market reports, LNM Group chairman Lakshmi Mittal made progress in taking over 52% of South African major steel company Iscor by a business assistance agreement. Agreement will conclude in December 2004. In respect of this agreement, LNM, currently holding 47% of Iscor since February 2003, will raise its shares by 5% and take control of Iscor in case the Group succeeds in accomplishing annual savings of Iscor to reach up to Rand 700 million (about $103 million). However, it is also stated that this is subject to the approval of the Competition Commission. It is expected that LNM will most probably pass 50% after 2004. Besides, as previously reported by SteelOrbis, the group has no intention to increase its share at Iscor beyond 60%.