Florida-based US steelmaker Gerdau Ameristeel Corp. and Brazilian longs producer Gerdau S.A. announced on June 30 that they have entered into a definitive arrangement agreement to implement the previously announced proposal for the buy-out by Gerdau S.A. of outstanding shares in Gerdau Ameristeel at a price of US$11 cash per common share. The transaction values Gerdau Ameristeel's publicly held shares at US$1.6 billion.
Gerdau Ameristeel noted that, to be implemented, the arrangement will require approval by two-thirds of the votes cast by holders of common shares. In addition, the arrangement will require approval by the Ontario Superior Court of Justice and will be subject to certain customary conditions.
Currently, Gerdau S.A owns 66.3 percent of shares of Gerdau Ameristeel.