Ternium Completes Acquisition of Additional Participation in Usiminas Control Group

Rhea-AI Summary

Ternium S.A. completes the acquisition of 68.7 million ordinary shares of Usinas Siderúrgicas de Minas Gerais S.A. (Usiminas) from Nippon Steel Corporation, Mitsubishi, and MetalOne for $118.7 million in cash. Ternium now holds a 51.5% stake in Usiminas and will fully consolidate its financials starting July 2023.

LUXEMBOURG / ACCESSWIRE / July 3, 2023 / Ternium S.A. (NYSE:TX) today completed, together with Confab, a subsidiary of its affiliate Tenaris S.A., the previously announced acquisition of 68.7 million ordinary shares of Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS ("Usiminas") from Nippon Steel Corporation, Mitsubishi and MetalOne (the "NSC group"), pro rata to their current participations in the T/T group within Usiminas control group, at a price of BRL10 per ordinary share.

Pursuant to the transaction, Ternium paid $118.7 million in cash for 57.7 million ordinary shares, increasing its participation in the Usiminas control group to 51.5%. As previously announced, upon closing of the transaction, the Usiminas shareholders agreement was amended and restated to reflect a revised governance for Usiminas. As a result, Ternium will fully consolidate Usiminas balance sheet and results of operations in its consolidated financial statements beginning in July 2023.

About Ternium

Ternium is Latin America's leading flat steel producer, with operating facilities in Mexico, Brazil, Argentina, Colombia, the southern United States and Central America. The company offers a broad range of high value-added steel products for customers active in the automotive, home appliances, HVAC, construction, capital goods, container, food and energy industries through its manufacturing facilities, service center and distribution networks, and advanced customer integration systems. More information about Ternium is available at www.ternium.com.

Forward Looking Statements

Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium's control.

Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com

SOURCE: Ternium S.A.

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FAQ

What is the name of the company mentioned in the press release?

The company mentioned in the press release is Ternium S.A.

What is the name of the company being acquired?

The company being acquired is Usinas Siderúrgicas de Minas Gerais S.A. (Usiminas).

Who did Ternium acquire the shares from?

Ternium acquired the shares from Nippon Steel Corporation, Mitsubishi, and MetalOne.

How much did Ternium pay for the shares?

Ternium paid $118.7 million in cash for the shares.

What is Ternium's stake in Usiminas after the acquisition?

Ternium now holds a 51.5% stake in Usiminas.

When will Ternium start consolidating Usiminas' financials?

Ternium will start consolidating Usiminas' financials beginning in July 2023.