Wednesday, 04 April 2018 07:30 AM
Stock Monitor: Worthington Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 04, 2018 / Active-Investors.com has just released a free research report on ArcelorMittal (NYSE: MT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MT as the Company's latest news hit the wire. On April 02, 2018, ArcelorMittal and Japan's Nippon Steel & Sumitomo Metal Corporation ("NSSMC") announced that they have jointly made a fresh offer for acquisition of Essar Steel India Ltd. The fresh bid was made via ArcelorMittal's subsidiary ArcelorMittal India Private Limited ("AMIPL"). ArcelorMittal and NSSMC have formed a joint venture (JV) on March 02, 2018, to acquire and manage Essar Steel. Register today and get access to over 1,000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is currently working on the research report for Worthington Industries, Inc. (NYSE: WOR), which also belongs to the Basic Materials sector as the Company ArcelorMittal. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/?symbol=WOR
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, ArcelorMittal most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=MT
The other participants who bid for Essar Steel in the second round included JV of Numetal and JSW steel and the Vedanta Group.
Sharing his views on the second bid, Lakshmi Mittal, Chairman and CEO ArcelorMittal, said:
"We believe that ArcelorMittal, together with NSSMC, has the most relevant credentials and experience and is the most credible owner for Essar Steel given our decades of steel industry expertise, backed up by industry leading research and development and a wide range of innovative product capabilities."
Kosei Shindo, President of NSSMC, added:
"Essar Steel is a good asset with a lot of potential and I believe that NSSMC and ArcelorMittal could provide operational experience and access to the best of global technologies that will enable Essar Steel to reach its potential and greatly contribute to the turnaround of the Indian steel manufacturing sector."
Backdrop
Essar Steel Ltd is a fully integrated flat carbon steel manufacturer with a production capacity of 10 million tonnes per annum (MTPA). Essar Steel is under the corporate insolvency resolution process as per the provisions of India's Insolvency Bankruptcy Code 2016. The National Company Law Tribunal (NCLT) approved the start of bankruptcy proceedings against Essar Steel in August 2017. The Company was among the 12 companies which the Reserve Bank of India (RBI) had asked banks to refer to the bankruptcy court.
NCLT's decision was based on the two petitions filed by State Bank of India (SBI) and Standard Chartered Bank, two of the leading lenders to Essar Steel. Essar Steel owed approximately Rs 45,000 crore to its lenders out of which assets valued nearly Rs31,671 crore had become non-performing as of March 31, 2016. The Company owed 93% of this amount to a consortium of 22 creditors led by SBI, while it owed approximately $538 million to Standard Chartered Bank.
ArcelorMittal had submitted its first bid for Essar Steel on February 12, 2018. Numetal, a SPV (special purpose vehicle) floated by Russian lender VTB Bank and Rewant Ruia was the second Company that had made a final bid on Essar Steel in the first round. Six other Companies had submitted expressions of interest for Essar Steel, which included Tata Steel, state-owned Steel Authority of India Ltd (“SAIL”), ArcelorMittal, Numetal, Vedanta, and Singapore-based fund SSG.
The first bids from ArcelorMittal and Numetal were rejected after they were found ineligible as per the Insolvency Bankruptcy Code (IBC) laws which prevented the promoters of defaulting Companies from bidding for stressed assets. ArcelorMittal's bid was found ineligible as its JV with Uttam Galva is awaiting resolution from NCLT. The bankers had sought fresh bids for Essar Steel following the rejection of bids from ArcelorMittal and Numetal. The deadline was April 02, 2018, for second round of bidding for Essar Steel.
ArcelorMittal's contention is that it had already sold its stake in Uttam Galva and exited from another defaulter Company KSS Petron, before it made the bid for Essar Steel in the first round. However, stock exchange had not incorporated the changes and hence ArcelorMittal's bid for Essar Steel in the first round was declared not eligible. ArcelorMittal approached the Ahmedabad bench of the NCLT to clarify its stand on the matter of eligibility of its bid.
The bankers had indicated that if ArcelorMittal is able to delink itself as a promoter of Uttam Galva, or if the Company standardized their loans, it could bid for Essar Steel again in the second round.
About Nippon Steel & Sumitomo Metal Corp.
Tokyo, Japan-based NSSMC was formed in 2012 with the merger of Nippon Steel and Sumitomo Metal. It is the world-leading integrated steel producer and manufactures a wide range of value-added steel products. The Company's business is focussed on three business fields - high-grade steel products for automobiles, resources and energy and civil engineering, construction, and railways. The Company has manufacturing facilities worldwide including 13 steelworks in Japan. Its production capacity is approximately 50 million tons of crude steel per year. The Company has over 84,000 employees globally.
About ArcelorMittal
Luxembourg-based ArcelorMittal is the world's leading steel and mining Company. The Company caters to the needs of the major global steel markets including automotive, construction, household appliances, and packaging. In FY16, the Company had an annual achievable production capacity of approximately 113 million tonnes of crude steel. It is one of the largest iron ore producers in the world and had 14 operating units with mines in operation and development in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, and the US. The Company has significant global presence with across 60 countries and an employee strength of over 199,000 people worldwide.
Stock Performance Snapshot
April 03, 2018 - At Tuesday's closing bell, ArcelorMittal's stock slightly advanced 0.80%, ending the trading session at $31.60.
Volume traded for the day: 4.86 million shares, which was above the 3-month average volume of 3.64 million shares.
Stock performance in the previous six-month period – up 22.67%; and past twelve-month period – up 26.15%
After yesterday's close, ArcelorMittal's market cap was at $31.07 billion.
Price to Earnings (P/E) ratio was at 7.08.
The stock has a dividend yield of 0.32%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry. This sector was up 1.5% at the end of the session.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors