Arcelor SA’s €1.2bn warrants rights issue
Deutsche Bank, BNP Paribas, Calyon, Fortis and Santander were joint lead managers and joint bookrunners
To fund the acquisition of a controlling stake in Companhia Siderúrgica de Tubarăo (CST), a world leader in the carbon steel slab market and one of the world’s lowest cost producers, Arcelor SA announced a €1.2bn capital raising through the issue of warrants to subscribe for new Arcelor shares.
New shares were subscribed at a price of €11 per share – a 19.8% discount to the closing price on the date of announcement. The transaction was extremely well received by both investors in Arcelor and the wider capital markets community, as shown by a 94% take-up of the warrants offering and outperformance of Arcelor’s share price against key indices.
What particularly appealed to the judges was the innovative nature of the funding solution, which was structured to avoid the long timeframe and subsequent increased market risk involved in a traditional rights issue.
