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ACLN

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CHOCKIE
Occasional Contributor
MORNING IN I UNDERSTAND IT CORRECTLY, WHY WOULD I WANT TO BUY ACLN @R6.50 WHEN I CAN BUY THE ACL SHARE AT R4.17 CONFUSSED
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3 REPLIES 3
Not applicable
you wouldn't - which is why the rights issue is likely to fail. Its a BS issue anyways - asking you the shareholder to finance a BEE transaction out of your pocket. Best thing you can do right now is offload while you can. Its only a matter of time before the international firm writes the local entity off, I predict - in which case you the lonely shareholder - with your newly purchased worthless pile of extra stock bought at a premium will be right up the old youknowwhat creek without the paddle
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BullsnBears
Contributor
Another ANC scam to make the cadres rich. Drop this thing like a hot potato. As Skaaptjop said, you are being expected to hand over your money to the BEE clowns. It's bordering on a scam.
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indium
Contributor
Extract from rights issue doc - main reason is for repayment of holding company loan account as presumably they do not generate sufficient free cash flow to repay it from the business. So shareholders are effectively being asked to repay daddy - It is intended that the funds raised from the ArcelorMittal Group under the Rights Offer, will be first used to settle ArcelorMittal Group loans up to a maximum of R3.2 billion, with any balance being retained for operational and near-term capital expenditure purposes. This will allow the Company to optimise its financial position before embarking on its extended R4.5 billion capital programme over the next five years. Apart from the ArcelorMittal Group loans, there is no other material long-term debt outstanding.
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