Saudi Arabia’s Public Investment Fund (PIF) is planning to inject up to $300 million into ArcelorMittal Tubular Products Jubail (AMTPJ), Bloomberg reported on Wednesday, citing unnamed sources familiar with the matter.
The sovereign wealth fund aims to double its stake in the troubled steel pipe plant, co-owned by ArcelorMittal, to 40 percent through a debt-for-equity swap, with ArcelorMittal’s holding not impacted.
No agreement has been yet reached about the final terms of the deal and the plans could change, the sources said.
The deal comes as part of PIF’s strategy to build the Kingdom’s position as a supplier of pipes for the energy sector.
The Jubail-based steelmaker was established in 2007 by ArcelorMittal as a joint venture with the Al-Tanmiah Co., a unit of the Bin Jarallah Group. The facility operates with an annual capacity of 600,000 tons.
However, the project was hit by the financial crisis, the Great Recession and the oil price collapse at the end of 2014.
In 2016, ArcelorMittal wrote the value of its equity investment down to zero, maintaining its 40.8 percent stake in the venture.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}