ArcelorMittal announces share buyback program

Rhea-AI Summary

ArcelorMittal has announced a share buyback program with a maximum amount of US$650 million, authorized by its AGM in June 2020. This program will help meet obligations related to debt exchangeable into equity securities and reduce share capital. Following this, a second program worth US$570 million will commence, aligning with the company's capital returns policy. Both buyback programs are set to be completed by 31 December 2021. The share repurchase agreement ensures that the Significant Shareholder maintains their voting rights.

Positive

• Initiation of a US$650 million share buyback program.
• Second buyback program of US$570 million in alignment with the capital returns policy.
• Strengthened shareholder value through share reductions.

Negative

• None.

 

15 February 2021, 08:00 CET

ArcelorMittal (‘the Company’) today announces a share buyback program (the ‘Program’) under the authorization given by the annual general meeting of shareholders held on June 13, 2020 (the ‘AGM Authorization’).

For the background to this Program, reference is made to the Company’s press release dated 9 February relating to the Company selling 40 million Cleveland-Cliffs common shares for gross proceeds of US$652 million.

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 US$650 million in accordance with the AGM Authorization and applicable market abuse regulations. The Program will commence today¹.

Furthermore, on completion of the Program, ArcelorMittal will commence a further share buyback program for an aggregate amount of US$570 million, in-line with the Company’s new capital returns policy announced on 11 February in the Company’s fourth quarter and full year 2020 financial results. Both share buybacks programs will be completed by 31 December 2021. Further details regarding this second share buyback program will be announced ahead of its commencement.

ENDS

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.

About ArcelorMittal

ArcelorMittal is one of 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.

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

FAQ

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

The program aims to meet obligations under debt exchangeable into equity securities and to reduce share capital.

When will ArcelorMittal's share buyback programs be completed?

Both programs are scheduled to be completed by 31 December 2021.

How much is ArcelorMittal spending on the share buyback program?

ArcelorMittal plans to repurchase shares for an aggregate maximum amount of US$650 million.

What is the total amount for ArcelorMittal's share buyback initiatives?

The total amount for the buyback initiatives is US$1.22 billion, comprising US$650 million and a subsequent US$570 million.