London: Overwhelmed by European steel giant Arcelors' consent to merge with Mittal Steel to form the world's largest steel company, Arcelor Mittal, valued at $32.21 billion, L N Mittal said, this is one of the greatest day in the history of his company.
"I am delighted that Mittal Steel and Arcelor have agreed to merge. This is one of the greatest days in the history of Mittal Steel and a seminal event in the steel industry that will shape its future. Arcelor is an exceptional company with world-class assets and highly regarded management," Mittal said.
Speaking about the weekend's developments Mittal said, "this combination is a natural alliance that represents a transformational change towards realising our vision of a more sustainable and stable industry benefiting all stakeholders."
Mittal added that it is a winning combination between the two complementary companies, "creating the industry leader that will create significant value for the shareholders."
The combined group will be domiciled and headquartered in Luxembourg. Under the terms of the revised offer, shareholders of Arcelor will receive 13 Mittal Steel shares and €150.60 in cash for 12 Arcelor shares.
Mittal Steel is also offering to acquire Arcelor Convertible Bonds in a mixed offer of 13 Mittal Steel shares and €188.42 in cash for 12 Arcelor Convertible Bonds, according to a press statement from Mittal Steel.
In addition, Arcelor shareholders will have the right to receive a cash and stock mix in any proportion they elect, provided that 31 per cent of the aggregate consideration paid is paid in cash and 69 per cent in stock.
The maximum amount of cash to be paid by Mittal Steel will be approximately €8.5 billion and the maximum number of Mittal Steel shares to be issued will be approximately 722 million, assuming the conversion of the outstanding Arcelor Convertible Bonds.
Following completion of the transaction and assuming a 100 per cent acceptance rate of the tender offer by Arcelor shareholders, current Arcelor shareholders will own collectively 50.5 per cent of the combined group.
The Mittal family will own 43.6 per cent of the capital and voting rights of the combined group.
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