Management Report - Beursgorilla

ArcelorMittal Annual Report 2009Annual Accounts 93Note 7: Transferable SecuritiesTreasury sharesAcquisition costOpening balance 3,759Additions 2,231Disposals (5,248)Closing balance 742Value adjustmentsOpening balance (2,461)Charge for the year —Utilization 1,289Reversal 1,172Closing balance —Net book valueOpening balance 1,298Closing balance 742As of December 31, 2009, the Company holds 23,054,885 (2008: 54,490,240) of treasury shares (shares owned by the Company).On April 29, 2009, the Company announced an offering of 140,882,634 common shares which was closed on May 6, 2009(the ‘Offering’). Pending shareholder approval for authorization to increase issued share capital, the Company entered into a ShareLending Agreement dated April 29, 2009 (the ‘Agreement’), with Ispat International Investments S.L. (‘Ispat’), a company controlledby Mr Lakshmi and Mrs Usha Mittal, under which the Company borrowed 98,000,000 shares. The 98,000,000 borrowed shares wereaccounted for as treasury shares and then issued, along with 28,794,371 other treasury shares, to fulfill all subscriptions to the Offeringother than the 14,088,263 shares subscribed by Ispat. As a result of the Offering, the sale of treasury shares utilized 1,282 of thevalue adjustment recognized as of December 31, 2008. Under the terms of the Agreement, the Company paid a share lending fee of 2.Other transactions on treasury shares resulted in an additional utilization of the value adjustment for 7. The remaining value adjustmentrecognized in 2008 and amounting to 1,172 was reversed in 2009 as a result of the increase of the market value of the treasury sharesabove the aggregate cost (note 16).Note 8: Capital and ReservesShare Reserve ProfitNumber of Subscribed premium Legal for treasury brought Profit/(Loss)shares capital account reserve shares forward for the year TotalBalance as atJanuary 1, 2008 1,448,826,347 9,269 17,811 822 1,298 8,645 19,094 56,939Allocation of net result 105 18,989 (19,094)Profit/(Loss) for the year (507) (507)Director’s fees (3) (3)Dividends paid* (1,106) (1,106)Capital increase 112,088,263 681 1,871 2,552Reserve for treasury shares (556) 556Balance as atDecember 31, 2009 1,560,914,610 9,950 19,682 927 742 27,081 (507) 57,875* Equivalent to the 2008 Dividend of 1,086; net of dividends on treasury shares.