One of world's leading steel pipe producers, Tenaris announced on August, 29 that it has filed a request with CVM (Brazil's securities regulator) and the Sao Paulo stock exchange seeking their approval to a public delisting tender offer to acquire all of the ordinary and preferred shares held by the public in its controlled Brazilian subsidiary Confab Industrial S.A.
If the offer gets approval, Tenaris will offer to pay a price in cash of $3.18 per ordinary or preferred share, which represents a premium of approximately 32 percent to Confab's closing price of August 26, 2011. Tenaris currently owns 99 percent of Confab's ordinary shares, which represent 99 percent of the voting rights and 41 percent of the share capital. If all Confab shares not already owned by Tenaris are acquired, the transaction would be valued at $775 million.
Confab is a leading Brazilian producer of welded steel pipes and industrial equipment for the energy industry and other applications.