Nov 8 2007
ArcelorMittal, the world’s largest steel company, has announced today it has entered into an agreement to acquire 820,119,151 ordinary shares or an approximate 28% equity interest in China Oriental Group Company Limited (the “Company” ) from Smart Triumph Corporation and Ms. Chen Ningning for a total consideration of US$ 647m. As a result of the acquisition, ArcelorMittal has become the second largest shareholder of the Company.
The Company, which is listed on the Main Board of The Stock Exchange of Hong Kong Limited, manufactures and sells steel products such as billets, strips, H-beams, cold rolled and galvanized strip through its main operating subsidiaries Hebei Jinxi I&S in Hebei and Foshan Jinxi in Guangdong, People’s Republic of China. For the year ended 31 December 2006, the group sold approximately 3.75 million tonnes of steel products, and reported revenues of US$ 1,313m and EBITDA of US$ 225m. For the six month ending in June 2007 the Company reported revenues of US$890m and EBITDA of US$161m.
The acquisition enables ArcelorMittal to build on its presence in the important and fast growing steel industry in the People’s Republic of China, a country which constitutes a significant part of its corporate strategy.