TOKYO Japan's Nippon Steel said on Thursday that it would cut its stake in Brazilian steelmaker Usinas Sider rgicas Gerais Usiminas to give another co-owner, Ternium, a bigger share in the asset.
Both parties agree that the new governance structure, in which Ternium has an extensive business network in Latin America, will lead to the interests of all stakeholders of Usiminas, Nippon Steel said in the statement.
After approval by the Brazilian antitrust authority and clearing other conditions, Nippon Steel would transfer 64.2 million ordinary shares at a price of 10 Brazilian reals $1.95 per share.
After the deal, the Japanese steelmaker added that Ternium's voting ratio would increase by nearly 10 per cent to 49.5 per cent and Nippon Steel would maintain a 22.2 per cent stake in Usiminas' voting capital.