Vallourec slips in Paris, ArcelorMittal reduces stake by selling 10 per cent
The shares were sold at a unit price of EUR 24, with gross proceeds of approximately USD 667 million
(Il Sole 24 Ore Radiocor)- Vallourec fell on the Paris Stock Exchange after ArcelorMittal sold a 10% stake in the company. The French seamless steel pipe producer's share price fell the most in the Sbf index and also in the Stoxx Europe 600 index, while maintaining a gain of more than 50% since the beginning of the year. In contrast, shares of ArcelorMittal rose. ArcelorMittal sold 23.9 million Vallourec shares at a unit price of €24, with gross proceeds of approximately USD667 million (€574 million), according to a statement from the steel giant. The transaction was completed through an accelerated bookbuilding process with institutional investors and 'reflects the group's disciplined approach to capital allocation and portfolio management'. Proceeds from the sale 'will be returned to ArcelorMittal shareholders through the ongoing share buy-back programme'.
The multinational steel company 'continues to consider the French company a high-quality operator with a solid market position'. Arcelor, which had entered the French group's shareholder base in 2024, will retain approximately 17.3% of Vallourec's share capital and will continue to hold a seat on the board of directors. In addition, the company has agreed to a 90-day lock-up period on its remaining stake in Vallourec from the settlement date. Analysts at Jefferies point out that 'the sale of this stake in Vallourec may come as a surprise to some investors, who assumed that ArcelorMittal would eventually increase its shareholding'. The research firm points out, however, that 'these expectations predated Vallourec's share price rally since the beginning of the year. From the perspective of the global steel producer, the return on investment is attractive' and contributes to the return of capital to shareholders.
