Mittal Steel Holdings, which, according to the latest report, owns 36 percent of Comvex Constanta, will launch a public takeover offer tomorrow for the port operator, at a price of RON 55/per share. According to information published by the Bucharest Stock Exchange (BVB), Mittal Steel Holdings could pay RON 155.6 million (€41.7 mln) for the 2.829 million shares, which make up 64.01 percent of Comvex Constanta’s shares. The price per share offered by Mittal Steel Holdings is 7 percent higher than yesterday’s price for Comvex shares. The offer will take place in the 22 October – 11 November period and will be run by HTI Valori Mobiliare brokerage firm, which was taken over last year by the American Morgan Stanley investment bank.
The ArcelorMittal giant controls the Romportmet Galati port operator, which assures river transportation of its raw materials, coal and finished products. The company does not have its own port operator for sea transport, using the services of Comvex Constanta, whose principal client it is. According to several steel production sources, the decision to take over Comvex is part of the vertical integration strategy, applied in the past few years by the global leader. The acquisition will also allow ArcelorMitall to better control costs. If the offer is successful, ArcelorMittal will fully control the Comvex port operator, through two of its branches.
Comvex Constanta (CMVX) posted net profit in the first half of the year worth RON 16.89 million (€4.6 mln), 89 percent higher than in H1 2007. Turnover in H1 2008 amounted to RON 71.81 million (€19.57 mln), double that in the first half of 2007, of RON 34.77 million. The company’s majority shareholder is Solidmet SRL, with 53.94% of the capital, and Expert Placement Services Limited, another subsidiary of the ArcelorMittal group, which owns 35.99% of Comvex shares, following the acquisition of several share packages in July.
