Nov 29 2005
Mittal Steel Company N.V., hasannounced that it has completed its acquisition of 93.02% of Kryvorizhstal.
Under the terms of the share purchase agreement, 3,590,038,755 shares have been transferred to Mittal Steel for a total consideration of UAH 24.2 billion (US$4.84 billion)*. The transaction has been financed out of Mittal Steel's own cash resources and credit lines.
Kryvorizstal is the largest carbon steel long products producer in the 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$478 million in 2004. The net cash position was US$413 million as at 30 June 2005.
Following completion of the transaction, Mittal Steel has also now taken operational control of Kryvorizhstal. As such, the Company is pleased to announce that it has appointed Mr Narendra Chaudhary as CEO of Kryvorizstal. Mr Chaudhary joined Mittal Steel in 1993 and has over forty years of experience in the steel industry, in a wide range of technical and managerial positions. During his time at Mittal Steel, he has been CEO of both Mittal Steel Galati and Mittal Steel Temirtau. Most recently he was Director Operations and Maintenance, based in London.
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