Ternium : to Acquire Additional Shares in Usiminas
October 02, 2014 at 05:00 pm EDT
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LUXEMBOURG--(Marketwired - Oct 2, 2014) - Ternium S.A. (NYSE: TX) announced today that it has entered into a definitive purchase agreement with Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI for the acquisition of 51.4 million ordinary shares of Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS ("Usiminas") for a total amount of BRL 616.7 million (approximately USD 248.6 million). The price of BRL12 per share (approximately USD4.84) represents a premium of approximately 42% to Usiminas' ordinary share last-six-months average U.S. dollar price. The acquisition does not trigger any tender offer requirements.
Following the acquisition of these additional shares, Ternium will own 136.1 million ordinary shares, and the T/T Group (comprising Ternium S.A., Siderar S.A.I.C. and Confab Industrial S.A.) will own 191.1 million ordinary shares, representing 38% of Usiminas' ordinary shares. During the term of the Usiminas shareholders agreement, Ternium will be required to vote these shares in accordance with the decisions of the Usiminas control group.
Forward Looking Statements
Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium's control.
About Ternium
Ternium is a leading steel producer in Latin America, with an annual production capacity of approximately 10.9 million tons of finished steel products. The company manufactures and processes a broad range of value-added steel products for customers active in the construction, automotive, home appliances, capital goods, container, food and energy industries. With production facilities located in Mexico, Argentina, Colombia, the southern United States and Guatemala, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. In addition, Ternium participates in the control group of Usiminas, a Brazilian steel company. More information about Ternium is available at www.ternium.com.
Ternium S.A. is a producer of steel products. The Company produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The Company operates through two segments: Steel and Mining. The Steel segment includes the sales of steel products and the Mining segment includes the sales of iron ore products, which are primarily inter-company. The Steel segment comprises three operating segments: Mexico, the Southern Region and Other Markets. In the steel segment, steel products include slabs, billets and round bars (steel in its basic, semi-finished state), hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plate, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, roll-formed products, and other products. In the mining segment, iron ore is sold as concentrates (fines) and pellets.
TERNIUM S.A. 
