Brazil-based steelmaker Gerdau S.A. has announced that its plans to merge Gerdau with Brazilian steel company Acos Villares (S.A.) and Brazil-based construction company Prontofer Servicos de Construção Ltda have been approved at extraordinary general meetings and a partners' meeting of the companies concerned.
Accordingly, each partner of Prontofer receives one share of Gerdau for every 22.247601 quotas of Prontofer held by him and each shareholder of Villares receives one preferred share of Gerdau for every twenty-four shares of Villares held by him. The Gerdau shares that will be attributed in replacement of the rights of the partners/shareholders of Prontofer and Villares will be credited on October 2, 2011.
Currently, Acos Villares is one of Gerdau's controlled companies, while Prontofer's share capital is jointly held by Gerdau BG Participações S.A. and Grupo Gerdau Empreendimentos Ltda.
Gerdau's interest in Acos Villares is expected to be cancelled on the date of the merger and Gerdau will instead take sole ownership of the company as an investment replacement.
Gerdau will bear all of the costs and expenses related to the merger, which approximately total R$1.7 million (US$1 million).