ArcelorMittal Agrees To Sell Enovos Stake For EUR300 Million

Date : 05/10/2012 @ 9:01AM
Source : Dow Jones News
Stock : Arcelor Mittal NY Registry Shares New (MT)
Quote : 25.57  0.0 (0.00%) @ 4:22AM

ArcelorMittal Agrees To Sell Enovos Stake For EUR300 Million

Mittal Steel (NYSE:MT)
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Steel titan ArcelorMittal (MT) said Thursday it has agreed to sell its 23.48% stake in Luxembourg-based energy company Enovos International SA for EUR300 million as part of a wider plan to sell selective non-core assets in order to shore up its balance sheet.

Since September 2011 the world's largest steelmaker has sold $1.6 billion worth of non-core assets.

In November, Standard & Poor's Ratings Services lowered its outlook on the steelmaker to negative from stable, citing concerns about the company's high leverage and expectations that its financial metrics may deteriorate given uncertainty about the health of the European and U.S. economy.

ArcelorMittal has agreed to sell the stake to a fund managed by AXA Private Equity and will be paid in two installments. The first EUR165 million will be paid once the deal is closed and the remaining portion will be deferred for up to two years, with interest accrued over that period.

The deal is expected to close before the end of June, subject to regulatory approval, ArcelorMittal said.

Enovos specializes in the distribution and transmission of natural gas and electricity in Luxembroug, Germany, and France. The company's remaining shareholders include the Luxembourg state with a 25.44% stake, RWE AG (RWEOY) with an 18.36%, E.ON AG (EONGY) with a 10% stake and Electrabel, a unit of GDF Suez (GSZ.FR) with a 4.7% stake.

The City of Luxembourg also owns an 8% stake and investment fund Societe Nationale de Credit et d'Investissement, or SNCI, owns a 10% stake.

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com

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