Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is reportedly evaluating the sale of its stake in flats producer Usiminas, a media report from Estadao said this week.
Bank of America Merrill Lynch and Morgan Stanley are reportedly searching for investors to buy CSN’s minority stake at Usiminas in a potential “block trade” deal, also known as a scheduled stock auction.
CSN may sell the stocks this week, the media report said. CSN has about 14 percent of Usiminas’ voting shares, and 20 percent of the flats producer’s preferential shares.
The potential sale of its stake at Usiminas would help CSN reduce debt, as it renegotiates with creditors Caixa Economica and Banco do Brasil (BB).
CSN plans to extend about BRL 14 billion ($4.3 billion) in debt, and the company’s total debt reaches about BRL 29 billion ($9 billion).