<p>Under the plan, the company would allot its shareholders a scrip in the stainless steel unit for every existing 20 shares in the first quarter of 2011.<br /><br />"...the Board of ArcelorMittal confirms that it has concluded the assessment of a potential spin-off of the stainless steel business...which it believes will maximise value for shareholders," the Luxembourg-headquartered company said in an e-mailed statement.<br /><br />"Shareholders will receive one stainless steel business share for every twenty ArcelorMittal shares held on the record date," it said.<br /><br />Chairman and CEO of the company, Lakshmi Mittal in July had said the group was confident of the future of the stainless business and believed that the creation of a separately focused company will create additional value for all shareholders.<br /><br />The business employs around 11,000 people, about 4 percent of ArcelorMittal's total workforce.<br /><br />The widely expected spin-off is likely to result in a non-cash impairment charge of about USD 800 million, the company said adding, the stainless steel business unit will have a net debt of about USD one billion.<br /><br />It will comprise a combination of existing ArcelorMittal debt that will be transferred besides new loan raised by this business, the statement said.<br /><br />"As a result, the transaction is expected to be broadly neutral to ArcelorMittal's net debt to EBITDA leverage ratio," it added.<br /><br />However, the final impairment charge will be assessed by ArcelorMittal and reviewed by its auditors at year end, it said.<br />Currency fluctuations and change in working capital are the main factors that between now and year end may influence the final impairment amount, it said.<br /><br />The company plans to list the stainless steel shares on Euronext Paris, Amsterdam and in Luxembourg.<br /><br />In the United States, they will trade on over-the-counter market in the form of NY Registry Shares.<br /><br />However, the company said such shares will not be registered with the US Securities and Exchange Commission or listed on any national securities exchange in the United States. <br />The Stainless Steel division's 2009 sales were reported at USD 4.2 billion.<br /><br />In September, the company had appointed Group's head for Human Resources Bernard Fontana as Chief Executive of its stainless division in view of the potential spin-off.<br /><br />The global steel major, which is focusing on expanding mining operations has presence in more than 60 countries.<br /><br />It accounts for over 70 million tonnes of crude steel production, representing approximately 8 per cent of world steel output.<br /><br />It is listed on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia. <br /></p>
<p>Under the plan, the company would allot its shareholders a scrip in the stainless steel unit for every existing 20 shares in the first quarter of 2011.<br /><br />"...the Board of ArcelorMittal confirms that it has concluded the assessment of a potential spin-off of the stainless steel business...which it believes will maximise value for shareholders," the Luxembourg-headquartered company said in an e-mailed statement.<br /><br />"Shareholders will receive one stainless steel business share for every twenty ArcelorMittal shares held on the record date," it said.<br /><br />Chairman and CEO of the company, Lakshmi Mittal in July had said the group was confident of the future of the stainless business and believed that the creation of a separately focused company will create additional value for all shareholders.<br /><br />The business employs around 11,000 people, about 4 percent of ArcelorMittal's total workforce.<br /><br />The widely expected spin-off is likely to result in a non-cash impairment charge of about USD 800 million, the company said adding, the stainless steel business unit will have a net debt of about USD one billion.<br /><br />It will comprise a combination of existing ArcelorMittal debt that will be transferred besides new loan raised by this business, the statement said.<br /><br />"As a result, the transaction is expected to be broadly neutral to ArcelorMittal's net debt to EBITDA leverage ratio," it added.<br /><br />However, the final impairment charge will be assessed by ArcelorMittal and reviewed by its auditors at year end, it said.<br />Currency fluctuations and change in working capital are the main factors that between now and year end may influence the final impairment amount, it said.<br /><br />The company plans to list the stainless steel shares on Euronext Paris, Amsterdam and in Luxembourg.<br /><br />In the United States, they will trade on over-the-counter market in the form of NY Registry Shares.<br /><br />However, the company said such shares will not be registered with the US Securities and Exchange Commission or listed on any national securities exchange in the United States. <br />The Stainless Steel division's 2009 sales were reported at USD 4.2 billion.<br /><br />In September, the company had appointed Group's head for Human Resources Bernard Fontana as Chief Executive of its stainless division in view of the potential spin-off.<br /><br />The global steel major, which is focusing on expanding mining operations has presence in more than 60 countries.<br /><br />It accounts for over 70 million tonnes of crude steel production, representing approximately 8 per cent of world steel output.<br /><br />It is listed on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia. <br /></p>