Ternium S.A. (NYSE:TX) today announced a $1.0 billion offer to acquire from its publicly listed subsidiary Ternium Argentina S.A. (BYMA: TXAR) a 28.73% participation in Ternium Mexico S.A. de C.V. that Ternium does not own directly.
Ternium currently owns directly 71.27% and 62.49% of Ternium Mexico and Ternium Argentina, respectively, and fully consolidates the assets, liabilities and results of operations of both companies. Ternium Argentina is listed in the Argentine Stock Exchange (BYMA) and its main non-Ternium shareholder is Argentina’s national social security administration, with a 26.43% participation. No other shareholder has a participation in excess of 5% of Ternium Argentina’s shares.
The proposed transaction would be subject to, among other conditions, its approval by Ternium Argentina’s shareholders meeting with the affirmative vote of 95% of the shareholders present (excluding Ternium) and the simultaneous approval by Ternium Argentina of a dividend of $900 million.
“This transaction is primarily aimed at streamlining our corporate structure,” said Ternium CEO Máximo Vedoya. “A simplified corporate structure contributes to a more straightforward management of our operations and an easier analysis by our stakeholders of our performance and results. We will continue looking for opportunities to add value to our shareholders.”
If approved by Ternium Argentina’s shareholders meeting, the transaction is expected to close in the first quarter of 2022.
