Japan's Nippon Steel to cut its stake in Brazilian Usiminas for Ternium

By - Reuters


TOKYO (Reuters) - Japan's Nippon Steel said on Thursday it would cut its stake in the Brazilian steelmaker Usinas Siderúrgicas de Minas Gerais (Usiminas) to give another co-owner, Ternium, a bigger share in the asset.

"Both parties share a mutual perception and agreed that the new governance structure in which Ternium, having an extensive business network in Latin America, has a more important role, would lead to the interests of all the stakeholders of Usiminas," Nippon Steel said in the statement.

Nippon Steel would transfer 64.2 million ordinary shares at a price of 10 Brazilian reals ($1.95) per share after approval by the Brazilian antitrust authority and clearing other conditions.

As a result, Ternium's voting ratio would increase by nearly 10% to 49.5% and Nippon Steel would maintain a 22.2% stake in Usiminas' voting capital after the deal, the Japanese steelmaker added.

($1 = 5.1351 reais)

(Reporting by Katya Golubkova; Editing by Christian Schmollinger)