On March 15, Hunan Province-based Chinese steelmaker Hunan Valin Iron and Steel Co. (Valin Steel) announced that global steel giant ArcelorMittal has sold shares in Valin Steel worth RMB 150 million ($24.12 million) to Valin Group, the parent company of Valin Steel. The transaction price was RMB 4 per share ($0.64 per share), nearly double the present trading price. Before the transaction, ArcelorMittal held $96.46 million worth of shares in Valin Steel.
According to an agreement between ArcelorMittal and Valin Group signed on June 6, 2012, ArcelorMittal has the right to sell its $96.46 million worth of shares in Valin Steel in the following 24 months at four separate times, with no more than $24.12 million worth of shares being sold each time. Meanwhile, Valin Group would transfer respective 17 percent and 16 percent stakes in the joint venture Valin-ArcelorMittal auto sheet plant to Valin Steel and ArcelorMittal. The respective stakes held by Valin Group, ArcelorMittal, and Valin Steel in the Valin-ArcelorMittal auto sheet plant have already changed from 33 percent, 33 percent and 34 percent to zero percent, 49 percent and 51 percent.
