ArcelorMittal in talks to borrow R3.5bn as part of capital-raising plan
ArcelorMittal SA is in talks to borrow R3.5bn ($250m) as part of a capital-raising plan, the country’s largest steelmaker said on Thursday. The company didn’t specify what the funds would be used for, but has previously said it wants to refurbish existing facilities, including its Saldhana works in the Western Cape, and that an environmental clean-up will require investment. The Vanderbijlpark-based company lowered its net debt to R290m at the end of last year after raising R4.5bn in a rights issue. "ArcelorMittal is in the process of raising funds via a borrowing-based facility to the value of R3.5bn as part of a capital raising for the entire business," the company said in an e-mailed response to questions. Like many steelmakers around the world, ArcelorMittal SA has been hurt by cheap Chinese imports and rising costs, and hasn’t made an annual profit since 2010. The company has pledged to limit job cuts, increase black ownership and invest in supply, in return for the government ...
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