ArcelorMittal for open offer for stake in COGL

NRI Lakshmi Mittal-run ArcelorMittal on Friday said it will pay at least USD two billion for a controlling stake in Chinese steelmaker China Oriental (COGL), in which it already holds a 28 per cent stake. World's biggest steelmaker ArcelorMittal said it will make an open offer to purchase shares not already owned by it at a price not less than HKD 6.12 per share - an offer that values the company at about USD 2.2 billion. On November 6- Mittal had acquired a 28.02 per cent stake held by Diana Chen Ningning, a former director and known as China's 'steel princess', for about USD 635 million.
Incidentally, Ningning was herself interested in acquiring control of Hong Kong-listed China Oriental at one point of time, but the move was opposed by the company chairman and CEO Han Jingyuan.
Besides buying out Ningning's stake, Mittal has also won over the support of Jingyuan and a circular filed by the company to the Hong Kong stock exchange on Thursday showed that the current "controlling shareholders" led by Jingyuan are now "parties acting in concert with Mittal Steel." These shareholders currently own 45.11 per cent stake in the company, which along with a 28.02 per cent stake now in Mittal Steel's name takes the total holding of Mittal and his associates to 73.13 per cent.The other shareholders own 26.87 per cent stake, as per the latest shareholding pattern filed with the exchange. "ArcelorMittal has entered into a shareholders' agreement with the controlling shareholders of China Oriental regarding their shareholdings in and the management of the company," the Luxembourg-based steel giant said in a statement.
Source:- http://www.headlinesindia.com/business