LNM Group, the world's second-biggest steelmaker, said it will buy a 69 percent stake in Poland's state- owned Polskie Huty Stali SA in an accord valued at $2 billion, including debt and investments
Published:
2 November 2003 y., Sunday
LNM will pay a total of 991 million zloty ($250 million) to cut some debt immediately and take on a further 3.4 billion zloty of debt to be repaid later. It also agreed to increase PHS's capital by 800 million zloty and invest 2.4 billion zloty by 2009. It bought the shares for less than 6 million zloty.
Netherlands-based LNM has expanded in central and eastern Europe by buying steel plants in Romania and the Czech Republic, making 8 million tons of steel a year in the region. PHS produces about 6 million tons annually. Poland is the largest of 10 countries set to join the European Union in May.
``The Polish economy is growing,'' LNM Chairman Lakshmi Mittal said in a telephone interview. ``When they become part of a larger Europe, it offers more opportunities for us in terms of our product mix and in terms of new markets.''
As part of the agreement, LNM will also provide PHS with a 300 million zloty bridging loan. In return, it will get more information on PHS's operations until the transaction is completed. PHS's four steel plants account for about 70 percent of Poland's steel market.
The Polish government started exclusive talks with LNM in July after rejecting an offer from U.S. Steel Corp., North America's largest steelmaker. The agreement with LNM is still subject to regulatory approval, LNM said, without elaborating.
Šaltinis:
quote.bloomberg.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
In Gothenburg Sweden a deal is done for Volvo. A delegation from China’s Zhejiang Geely Holding Group, China’s largest private-run car maker, was given the red carpet treatment when it agreed to buy Ford Motor’s Volvo car unit for 1.8 billion dollars.
more »
The President of the Spanish Government and current rotational President of the European Union, José Luis Rodríguez Zapatero, affirmed this Sunday that during his presidency of the EU, Spain will continue to support the inclusion of the "complete affirmation of equality between men and women" within the new economic strategy.
more »
Despite the unfavorable macroeconomic situation, AS UniCredit Bank Lithuanian Branch achieved positive activity indicators in 2009: the bank branch operated profitably, the total loan portfolio and assets increased and the number of customers grew.
more »
Young people, economic recovery and research should be the EU's top budgetary priorities, said the European Parliament on Thursday, when it became the first EU institution to adopt an opinion on next year's budget.
more »
The sixteen leaders of the euro area countries (the Eurogroup) have given their support to the financial aid mechanism for Greece; this involves the participation of the International Monetary Fund (IMF) and of the euro area countries through bilateral loans.
more »
Today, President of the European Commission José Manuel Barroso, President of the European Council Herman Van Rompuy and Spanish Prime Minister José Luis Rodriguez Zapatero representing the Presidency of the Council met the European social partners to look at how Europe can exit the current economic and financial crisis.
more »
Around 1,100 former furniture and textile workers in Lithuania will receive EU aid worth €1.2 million following a vote by Parliament on Thursday.
more »
An estimated 100 million people in developing countries will fall into extreme poverty because of the economic and financial crisis, according to a report being presented Wednesday evening in the House.
more »
The Heads of State or Government of the EU-27 will make their first formal decisions in the process to develop the “Europe 2020” strategy that aims to achieve sustainable economic growth, job creation as well as recognition for the European social model.
more »
On 16 March 2010 the Lithuanian Authority, Ryšių reguliavimo tarnyba (RRT), informed the European Commission that it was withdrawing its proposed measure on network infrastructure access markets.
more »