ArcelorMittal announces new $2.2 billion share buyback program

Rhea-AI Summary

ArcelorMittal announces a new $2.2 billion share buyback program following the annual general meeting authorization on 8 June 2021. The program aims to return surplus cash flow from 2021 and fulfill obligations under debt exchangeable into equity. Expected to commence on 2 August 2021 and complete by 31 December 2021, the program reflects confidence in the company's financial health. The initiative supports shareholder value by reducing share capital and is part of a broader strategy to return value to shareholders.

Positive

• Share buyback program of $2.2 billion enhances shareholder value.
• Reflects confidence in financial performance and surplus cash flow from 2021.
• Supports share capital reduction and fulfills obligations under debt exchangeable into equity.

Negative

• None.

29 July 2021, 07:30 CET

ArcelorMittal (the ‘Company’) today announces a new share buyback program in the amount of $2.2 billion (the ‘Program’) under the authorization given by the annual general meeting of shareholders held on 8 June 2021 (the ‘AGM Authorization’).

For the background to this Program, reference is made to the Company’s second quarter and half year 2021 results press release dated 29 July 2021 which outlines that it will (i) return the proceeds from the redeemed Cleveland Cliffs preference shares and (ii) advance a part of its prospective 2022 capital return to shareholders (to be funded from 2021 surplus cash flow under the capital return policy announced in February 2021) by launching a new $2.2 billion share buyback. This Program will be completed by 31 December 2021, subject to market conditions.

The shares acquired under the Program are intended:

1) To meet ArcelorMittal’s obligations under debt obligations exchangeable into equity securities, and/or;
2) To reduce its share capital.

ArcelorMittal intends to repurchase shares for an aggregate maximum amount of $2.2 billion in accordance with the AGM Authorization and applicable market abuse regulations. The Program will commence on 2 August 2021¹.

ENDS

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes.

Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

Contact information ArcelorMittal Investor Relations
General	+44 20 7543 1128
Retail	+44 20 3214 2893
SRI	+44 20 3214 2801
Bonds/Credit E-mail	+33 171 921 026 investor.relations@arcelormittal.com
Contact information ArcelorMittal Corporate Communications
Paul Weigh Tel: E-mail:	+44 20 3214 2419 press@arcelormittal.com

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¹ The Significant Shareholder has declared its intention to enter into a share repurchase agreement with ArcelorMittal, to sell each trading day on which ArcelorMittal has purchased shares under the Program, an equivalent number of shares, at the proportion of the Significant Shareholder’s stake in the Company of 36.34% of issued and outstanding shares of ArcelorMittal, at the same price as the shares repurchased on the market. The effect of the share repurchase agreement is to maintain the Significant Shareholder’s voting rights in ArcelorMittal’s issued share capital (net of treasury shares) at the current level, pursuant to the Program.

FAQ

What is the purpose of ArcelorMittal's $2.2 billion share buyback program?

The share buyback program aims to return surplus cash flow to shareholders and meet obligations under debt exchangeable into equity.

When will the share buyback program for ArcelorMittal begin and end?

The program is set to commence on 2 August 2021 and conclude by 31 December 2021, depending on market conditions.

How does the share buyback affect ArcelorMittal's share capital?

The shares repurchased will reduce ArcelorMittal's share capital, enhancing overall shareholder value.

What is the significance of the AGM authorization for ArcelorMittal's buyback program?

The buyback program is authorized by the annual general meeting held on 8 June 2021, allowing the company to proceed with the share repurchase.

How will the buyback program impact ArcelorMittal's stock price?

While the exact impact on stock price is uncertain, buybacks typically support stock prices by reducing the number of shares outstanding.