The board of Metalurgica Gerdau, the holding company that owns Brazilian integrated steelmaker Gerdau, approved a BRL 31.6 million ($10.15 million) capital increase, the company announced this week.
In order to complete the capital increase, Gerdau will issue 316,312 certificates of debt, which will be converted into 3.83 million common shares and 7.67 million preferential shares at a cost of BRL 2.75 each.
As the certificates are converted into shares, the total capital of holding company Metalurgica Gerdau will increase to nearly BRL 8 billion ($2.57 billion).