Steel major ArcelorMittal today said it has acquired 40% stake in Thailand-based HR coils maker G Steel Public Company for an undisclosed sum.
"ArcelorMittal is partnering with a group of major shareholders represented by the Leeswadtrakul family which is the founding shareholder of G Steel," the Luxemburg- based steel makers said in a statement.
G Steel and its subsidiary G J Steel Public Company have a combined capacity of over 2.5 million tonne per annum.
ArcelorMittal has signed a shareholders agreement with the Leeswadtrakul family and said the founding family would remain associated with the firms.
The company has also signed a credit facility agreement with G Steel and GJ Steel for $500 million for working capital, capital expenditure and other corporate purposes.
"G Steel is an important component of our overall emerging markets strategy and will provide ArcelorMittal with a major manufacturing presence in Thailand and the ASEAN region where we expect steel demand to continue growing. Somsak Leeswadtrakul has built a high quality operation.
"We are confident that our global expertise and investment will develop the company's potential and will facilitate an operational, financial and commercial turnaround," ArcelorMittal Chief Financial Officer Aditya Mittal said.
The investment by ArcelorMittal in G Steel is part of a broader plan by G Steel to strengthen its and GJ Steel's financial position. The amount of capital to be invested by ArcelorMittal would be determined closer to the completion of the transaction, the statement added.
