Universal Industrial Steel (UIS), the main shareholder of Vemarcorp, is seeking to fully acquire Acepar, which has faced five months of suspended production without capital for investments. Acepar has been involved in legal disputes regarding its state-versus-private ownership status, but now it seems to be approaching an acquisition plan.
According to news reports, 15 companies have evaluated Acepar and have opted not to proceed with offers except UIS and HCME, a Chinese based entity. Acepar CEO Paulo Cordozo stated that UIS is in the final stages of developing an acquisition agreement despite preference by some internal stakeholders for an acquisition agreement with Henan Compant Mechanical & Electrical Equipment Group Co Ltd (HCME). Labor groups have expressed preference for the promise to expand product lines and make $100 million in technological investments, but other shareholders oppose their payment level for the entity.
Cordozo stated that it is UIS’s desire to help Acepar become financially viable in the long-term. He stated, “It is our desire that the plant returns back to operations and stronger than before.”
Vermacorp operates a $35 million EAF in Villa Hayes, Paraguay, with 300 employees.