EQS-Adhoc: voestalpine AG: voestalpine sells majority stake in voestalpine Texas to ArcelorMittal

EQS-Ad-hoc: voestalpine AG / Key word(s): Disposal
voestalpine AG: voestalpine sells majority stake in voestalpine Texas to
ArcelorMittal

14-Apr-2022 / 07:30 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS – a service of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.

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voestalpine sells majority stake in voestalpine Texas to ArcelorMittal
Necessary HBI volume to implement first decarbonization step secured
long-term

voestalpine today signed an agreement with ArcelorMittal to sell 80% of
its stake in voestalpine Texas Holding LLC, a hot briquetted iron (HBI)
direct reduction plant in Corpus Christi, with production capacity of
approximately two million tons per year. Part of voestalpine’s further
shareholding is a long-term supply agreement of 420,000 tons per year of
the HBI produced in Corpus Christi. This provides the basis for further
decarbonization of the steel production in Linz and Donawitz („greentec
steel“). In addition, this cooperation with ArcelorMittal reduces the spot
market risk for the quantities not required by voestalpine.
The enterprise value for 100% of the shares in voestalpine Texas is
approximately EUR 900 million (USD 1 billion). As a result of today’s
signing, voestalpine Texas will be reported as a discontinued operation in
the 2021/22 financial statements in accordance with IFRS 5. The accounting
profit from the transaction is expected to amount to approximately EUR 280
million (approximately USD 310 million), of which the majority will be
reported in net income in the 2021/22 financial statements. The closing of
the transaction is expected to take place in 2 to 3 months. Taking into
account the expected debt development of voestalpine Texas as of today,
the transaction will lead to a cash inflow in the amount of the equity
value for 80% of the shares in voestalpine Texas of approximately EUR 610
million (approximately USD 680 million) at closing and thus to a
significant reduction of the net financial debt of the voestalpine Group.
Irrespective of this transaction, the company’s outlook for the 2021/22
financial year will be raised from an EBITDA of previously up to EUR 2.2
billion to slightly below EUR 2.3 billion.
 

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14-Apr-2022 CET/CEST News transmitted by EQS Group AG. www.eqs.com

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Language: English
Company: voestalpine AG
voestalpine-Straße 1
4020 Linz
Austria
Phone: +43 50304/15-9949
Fax: +43 50304/55-5581
E-mail: IR@voestalpine.com
Internet: www.voestalpine.com
ISIN: AT0000937503
WKN: 897200
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1327827

 
End of Announcement EQS News Service

1327827  14-Apr-2022 CET/CEST

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