Romanian steel producer ArcelorMittal Hunedoara has announced that its board of directors has approved the sale of all of the company's assets to Romania's UMB Steel for €12.5 million plus value added tax.
The board cited the lack of realistic turnover prospects based on available data, the urgent need to curb ongoing losses associated with retaining idle assets as decisive factors behind the approval assets, and the need to generate liquidity to meet outstanding obligations.
Transaction Terms
The transaction covers the transfer of all tangible assets owned by ArcelorMittal Hunedoara at the time of sale. These include manufacturing equipment and industrial plants such as electric arc furnace, rolling mill, locomotives, scrap processing and baling equipment, vacuum degassing and ladle furnace plants, steel structures, cranes and auxiliary systems, engines, bearings, spare parts, tools, laboratory and weighing equipment.
Also included are materials and supplies, covering scrap of external and internal origin, ferroalloys, refractory materials, electrodes and rolling rolls. In addition, all land and buildings located on the industrial site, including the slag heap and associated appurtenances, are part of the sale, along with all land owned by the company off the industrial site.
Completion of the transaction is subject to the satisfaction of several cumulative conditions that must be satisfied.
