LOSS-MAKING steel firm ArcelorMittal South Africa said on Monday that 68% of its 4,5 billion rand (US$270 million)rights offer had been taken up and its parent group would subscribe for the remainder amounting to about 1,4 billion rand.
The Johannesburg-listed firm, a unit the world No. 1 steel maker ArcelorMittal Group, launched the rights issue last November as it battled falling steel demand, cheap imports and higher costs.
The company’s share price fell 83% in 2015, underscoring the scale of investor concerns about its performance and the arduous nature of its operating environment.
ArcelorMittal said earlier this month that it planned to use 3,2 billion rand of the rights issue to reduce debt with the remainder earmarked for company operations.
The rights issue was equal to about three-quarters of its current market capitalisation.-Reuters