Shareholders agree to continue with AHMSA sale process

Monday, 03 April 2023 21:19:34 (GMT+3)   |   San Diego
       

The shareholders who control almost 62 percent of the shares of the steel company Altos Hornos de México (AHMSA) approved the board of directors to continue with the process of injecting working capital for the company to restart operations, the company informed the Mexican Stock Exchange (BMV).

"It was agreed to continue the process of entering new share capital (sale of the control package of AHMSA), under the terms established with a group of investors," the steel company reported on Friday afternoon, after concluding its shareholders' meeting.

New details of timing and amounts of the share sale were not disclosed.

Present at the assembly were 61.94 percent of AHMSA's capital stock. The main shareholder of the steel company is Grupo Acerero del Norte (GAN) with 51.6 percent of the shares, a percentage that increases to 53.3 percent, considering the holding of directors and directors of the steel company. Outside the control group, GAN, 8.64 percent of the private shareholders were present.

With a steel production capacity of 6.0 million metric tons of steel, AHMSA is paralyzed due to the lack of resources to purchase inputs (electricity and gas). On February 20, GAN signed an agreement for the sale of a controlling share package to a group of investors, whose identity is not yet known.

The new investors promised to inject $200 million to reactivate steel production. The first tranche of $50 million had been agreed for March 15 and the rest before May 15. The first injection was not performed.

With public information, as of September 2022, AHMSA's total assets were $2.24 billion and total liabilities $2.90 billion. A negative stockholders' equity (technical bankruptcy) of $655 million.


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