Gerdau buys NatSteel and Finlayson stake in Acominas

Gerdau buys NatSteel and Finlayson stake in Acominas

Brazilian steel maker Gerdau has decided to exercise its call option granted under the original agreement with Singaporean steel maker Natsteel Ltd, to acquire the entire share capital of NatSteel Brasil Ltda. Accordingly Gerdau will also takeover Finlayson Investment Pte's stake in addition to NatSteel Ltd's 66.8% share. In this regard the Brazilian steelmaker is going to pay $211.6 million to buy the entire share capital of NatSteel Brasil Ltda. NatSteel Ltd will be paid an approximate sum of $141.4 million under this agreement. NatSteel Brasil Ltda is an investment holding company formed for the sole purpose of holding NatSteel Ltd and Finlayson's interest in Brazilian steel maker Acominas. Therefore by acquiring NatSteel Brasil Ltda, Gerdau takes over the entire Natsteel and Finlayson interest in Acominas which corresponds to 24.79% of Acominas' share capital. This acquisition increases Gerdau's total stake in Acominas to 78.9% The first part of this transaction was completed in February when Gerdau had agreed with NatSteel Ltd to take over their share in NatSteel Brasil. The company's name is going to be changed as GTL Brasil Ltda.