Jun 29 2004
Companhia Vale do Rio Doce (CVRD), the world´s largest iron ore producer, informs that it signed a contract with Arcelor, the world´s largest steelmaker, to sell its stake in Companhia Siderurgica de Tubarão (CST).
CVRD agreed to sell to Arcelor 869,045,672 common shares and 9,381,163,397 preferred shares of CST, representing, respectively, 4.42% of the voting capital and 29.96% of the non-voting capital of this company. CVRD will be paid US$ 415.1 million for the shares and rights to be transferred to Arcelor according to the contract.
In addition, CVRD will sell to Arcelor 4,034,524,170 common shares of CST, linked to the current CST shareholders agreement. This last transaction will be concluded when one of the three following events occur, the first to occur will trigger the transaction: (i) termination of the current CST shareholders agreement on May 25, 2005; (ii) waiver given by the other participants of the shareholders agreement; (iii) purchase by Arcelor of the CST shares owned by the other participants of the CST shareholders agreement.
CVRD will be paid US$ 163.4 million for the CST shares. This price will be adjusted by an interest rate equal to Libor plus 1.5% per annum, minus dividends distributed by CST to CVRD from now to the conclusion of the transaction.
The sale of shares to Arcelor implies in the total divestment of the 28.02% share of the CST capital currently owned by CVRD. This movement is in line with the CVRD strategy to focus on the exploitation of profitable growth opportunities in the global metals and mining market.
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