Luxembourg steel and mining company ArcelorMittal reported Tuesday on the successful completion of its c.US$3bn rights issue.
1,229,905,208 new shares were subscribed for through the exercise of primary subscription rights under the rights, representing 97.4% of new shares to be issued. Oversubscription demand amounted to 372,398,986 new shares, representing 11.5 times the number of surplus shares available after satisfaction of the primary subscription rights, and will, as a result, be satisfied only in part, i.e. for 32,446,323 new shares.
Surplus shares will be allocated to holders that submitted oversubscription requests on a pro-rata basis, in proportion to the number of rights exercised by each Holder (excluding the oversubscription), in each case in an amount that does not exceed the maximum number of additional New Shares requested.
Post capital increase, ArcelorMittal’s issued share capital will consist of 3,065,710,869 shares without nominal value.
As announced on 5 February 2016, ArcelorMittal intends to use the net proceeds of the rights issue to reduce its indebtedness and to strengthen its balance sheet.
Settlement and delivery of new shares pursuant to rights held through the European clearing systems or directly in the European rights register is expected to take place on 8 April 2016. Delivery of new shares to holders of rights through DTC or the New York rights register is expected to take place on 11 April 2016.
The new shares are expected to be admitted to trading on the European stock exchanges on 8 April 2016 and on the New York Stock Exchange on 11 April 2016.
