Tenaris takes stake in troubled Brazilian steelmaker Usiminas
Steel tubes producer Tenaris announced late Monday the acquisition of 38.7mn shares of embattled Brazilian steelmaker Usiminas in a deal worth over 193mn reais (US$54mn).
TenarisConfab subscribed to 5.1mn of the shares for a total amount of 25.3mn reais, Tenaris said in a release.
Tenaris is part of Italian-Argentine conglomerate Techint, which includes steelmaker Ternium, one of the two major shareholders of Usiminas, together with Japan's Nippon Steel & Sumitomo Metal Corp.
Nippon and Ternium have been engaged in a power struggle over Usiminas since 2014.
USIMINAS
The acquisition comes after the board of Usiminas reached a consensus on the "urgent" need to pump cash into the company, which is being buffeted by severe financial headwinds.
The second largest Brazilian steel group has been trying to sell non-core assets for months to recover financial strength. It is also in negotiations with creditors.
In February, Usiminas reported a net loss of 3.69bn reais for 2015, compared with a net profit of 208mn reais the previous year. The loss was Usiminas' worst in more than 15 years.
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