Mexican steel giant Altos Hornos de Mexico (AHMSA) will have new owners with the signing of a contract, confidential until now, for the sale of a controlling share package to a group of foreign investors, according to media reports in Mexico.
Citing company spokesman Francisco Orduna Mangiola, reports said the terms of the purchase and sale of shares in AHMSA, with a production capacity of 6.0 million metric tons of steel per year, were not disclosed. The details will be released until the agreement is finalized and the corresponding authorizations are obtained.
SteelOrbis reached out to AHMSA officials for more details, but they were not immediately available.
The sale contract was signed on February 20, which includes a capital injection of $200 million to reactivate the operation of the steel company that has been paralyzed since the first days of January due to the lack of cash for the purchase of energy supplies.
The first $50 million will arrive in the next two weeks and the remaining $150 million before the first half of May.
It is important to note that the $200 million is for working capital to restart steel production. As of September last year, AHMSA's total assets were $2.24 billion and total liabilities $2.90 billion. A negative stockholders' equity (technical bankruptcy) of $655 million.
According to the Mexican press, Grupo Acerero del Norte (GAN), AHMSA's main shareholder, received purchase offers from both Mexican and foreign investors.