LNM Holdings to negotiate for sell-off of Polish steel company

Warsaw: LNM Holdings NV, part of the $12-billion LNM group, the world's second-largest steel producer, has been selected by the State Treasury of Poland to enter into exclusive negotiations for the privatisation of Polish steel manufacturer Polskie Huty Stali SA (PHS).

LNM is prepared to commence discussions to finalise the share-purchase agreement as soon as possible, with a view to completion by the end of July 2003.

The planned acquisition demonstrates the LNM group's strategy to build on its existing strong presence in Central and Eastern Europe. Through its ownership of Ispat Sidex in Romania and Ispat Nova Hut in the Czech Republic, LNM Holdings is the largest steel producer in the region with combined shipments of about 8 million tonnes of steel products.

Says group chairman Lakshmi N Mittal: "We look forward to working closely with the Polish State Treasury, the management of PHS, PHS' creditors and the Polish trade unions to complete discussions and finalise the acquisition."

The group has successfully negotiated over 10 similar transactions around the world. The LNM group produces 35 million tonnes steel per year and sells in more than 50 countries.