Ternium to Obtain Control of Mexico-Based Grupo Imsa
LUXEMBOURG--Ternium S.A. (NYSE:TX) announced today that it has entered into a definitive agreement under which it expects to obtain control of Grupo Imsa S.A.B. de C.V. in Mexico for a total consideration (equity value) of approximately US$1.7 billion.
Under the agreement, Ternium, or any of its subsidiaries, will make a tender offer in accordance with applicable Mexican law for all of the issued and outstanding share capital of Grupo Imsa at a price of US$6.40 per share. Concurrently with the consummation of the tender offer, Grupo Imsa's majority shareholders, owning approximately 90.4% of Grupo Imsa's issued and outstanding share capital, will have their shares redeemed in cash at the same price per share.
Ternium will finance the transactions primarily through debt, for which bank commitments have been secured.
Paolo Rocca, Ternium's Chairman commented: "Upon the completion of this transaction, Ternium will strengthen its position in North America, where more than 60% of its revenues will be concentrated. The integration of Imsa will expand Ternium's industrial capabilities in value added steel products in Mexico and in the USA, where it will have a team of more than 13,000 highly trained and committed employees."
The transaction is subject to Mexican and U.S. antitrust clearances, approval by the Mexican securities regulator, and other customary conditions. It is expected to close in the third quarter of 2007.
About Grupo Imsa
Grupo Imsa is a steel manufacturer with operations in Mexico, the United States and Guatemala. It has an annual production capacity of 2.2 million tons of hot rolled coils, 1.8 million tons of cold rolled products and 1.7 million tons of galvanized products. In addition, Grupo Imsa produces panels and other steel products. Grupo Imsa had net sales of US$3.4 billion in 2006.
About Ternium
Ternium is one of the leading steel companies in the Americas, producing a wide range of flat and long steel products. With operations in Mexico, Argentina and Venezuela and 18,000 employees, Ternium had net sales of US$6.6 billion and a production of 9.0 million tons of finished steel products in 2006.
Contacts
Ternium
Investor Relations:
Sebastian Marti, 866-890-0443
Mexico: +52 (81) 8865 2111
Argentina: +54 (11) 4018 2389
www.ternium.com
Under the agreement, Ternium, or any of its subsidiaries, will make a tender offer in accordance with applicable Mexican law for all of the issued and outstanding share capital of Grupo Imsa at a price of US$6.40 per share. Concurrently with the consummation of the tender offer, Grupo Imsa's majority shareholders, owning approximately 90.4% of Grupo Imsa's issued and outstanding share capital, will have their shares redeemed in cash at the same price per share.
Ternium will finance the transactions primarily through debt, for which bank commitments have been secured.
Paolo Rocca, Ternium's Chairman commented: "Upon the completion of this transaction, Ternium will strengthen its position in North America, where more than 60% of its revenues will be concentrated. The integration of Imsa will expand Ternium's industrial capabilities in value added steel products in Mexico and in the USA, where it will have a team of more than 13,000 highly trained and committed employees."
The transaction is subject to Mexican and U.S. antitrust clearances, approval by the Mexican securities regulator, and other customary conditions. It is expected to close in the third quarter of 2007.
About Grupo Imsa
Grupo Imsa is a steel manufacturer with operations in Mexico, the United States and Guatemala. It has an annual production capacity of 2.2 million tons of hot rolled coils, 1.8 million tons of cold rolled products and 1.7 million tons of galvanized products. In addition, Grupo Imsa produces panels and other steel products. Grupo Imsa had net sales of US$3.4 billion in 2006.
About Ternium
Ternium is one of the leading steel companies in the Americas, producing a wide range of flat and long steel products. With operations in Mexico, Argentina and Venezuela and 18,000 employees, Ternium had net sales of US$6.6 billion and a production of 9.0 million tons of finished steel products in 2006.
Contacts
Ternium
Investor Relations:
Sebastian Marti, 866-890-0443
Mexico: +52 (81) 8865 2111
Argentina: +54 (11) 4018 2389
www.ternium.com
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