Mittal Steel Company Acquires a 93% Stake in Kryvorizhstal in Ukraine

Mittal Steel Company has announced that it has agreed to acquire a 93.02% stake in the capital of KryvorizhStal from the State Property Fund of Ukraine following a public auction.

Under the terms of the share purchase agreement, Mittal Steel will acquire 3,590,038,755 shares of the share capital of the Company for a total consideration of UAH 24.2 billion (US$4.79 billion). The transaction will be financed out of Mittal Steel's own cash resources and credit lines. In addition to its existing liquidity lines and cash balances, Mittal Steel last week signed a US$3 billion loan agreement with Citigroup with terms similar to its US$3.2 billion revolving credit facility.

KryvorizhStal is the largest carbon steel long products producer in Ukraine and the nearby region with 2004 liquid steel production of 7.7 million tons and 2004 shipments of 6.7 million tons. It also produced 17.1 million tons of iron-ore. The Company had sales of US$1,897 million, EBITDA of US$551 million, EBIT of US$505 million and net income of US$378 million in 2004. The EBITDA margin was 29% in 2004. The net cash position was US$413 million as at 30 June 2005.

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