GGB » Topics » 27 Subsequent event

This excerpt taken from the GGB 6-K filed Aug 29, 2006.

14                      Subsequent event

On August 2, 2006, the Board of the Company approved the payment of R$0.35 dividends per common and preferred share to be paid as an anticipation of minimum statutory dividend. Those dividends will be computed based on shareholdings positions as of August 14, 2006, and the payment is scheduled for August 24, 2006.

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This excerpt taken from the GGB 6-K filed Aug 14, 2006.

14             Subsequent event

On April 5, 2006, Gerdau Ameristeel Corporation has signed a contract for the acquisition of 100% of Sheffield Steel Corporation, located in Sand Springs, Oklahoma, USA.

Sheffield Steel is a long steel mini-mill, mainly merchant bar and billets, with anual sales of 550 thousand tons of finished products. Sheffield operates a melt shop and a rolling mill in Sand Springs, Oklahoma, a rolling mill in Joliet, Illinois, and three units in Kansas City and Sand Springs.

Total amount to be paid by Sheffield Steel is estimated in around $94,000, and assumption of liabilities of $94,000. This agreement is still subject to the approval of Sheffield shareholders and antitrust authorities of USA, and should be concluded on the second quarter of 2006.

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This excerpt taken from the GGB 20-F filed Jun 19, 2006.

27                      Subsequent event

On November 14, 2005 the Company entered into an agreement to acquire 40% of Corporación Sidenor S.A. (“Sidenor”), a Spanish steel producer with operations in Spain and Brazil. The Santander Group, the Spanish financial conglomerate, and an entity owned by executives of Sidenor entered into an agreement to purchase 40% and 20% of Sidenor, respectively. Purchase price for the acquisition of 100% of Sidenor consists of a fixed price of Euro 443,820 plus a variable price, to be paid only by the Company of approximately Euro 19,500. Santander Group holds a put option to sell their interest in Sidenor to the Company, after 5 years, at a fixed price. Also, the Company has agreed to guarantee to the Santander Group the payment of an agreed amount after 6 years in the event that Santander Group has not sold the shares acquired up to such date or,  if the Santander Group sales its  interest at a price higher or lower than the agreed amount the difference will be paid Santander Group to the Company or by the Company to Santander Group, respectively.

Sidenor is a holding company which holds all outstanding shares of Sidenor Industrial S.L., which is the biggest producer of specialty long steel and forged parts of Spain, as well as one of the most important producers of forged stamp steel in that country. Sidenor Industrial owns three steel producing units, located in Basauri, Vitoria and Reinosa (Spain). During 2004, Sidenor Industrial sold 688,000 tons of finished products. Sidenor Industrial also owns Forjanor, S.L., a stamp forged producer, with industrial facilities in Madrid and Elgeta. During 2004, Forjanor sold 25,000 tons of finished products.

Sidenor also holds a 58.44% stake in Aços Villares S.A., a specialty long steel producer located in Brazil, with industrial facilities located in Mogi das Cruzes, Pindamonhangaba and Socoraba, all cities in the state of São Paulo, Brazil. During 2004, Aços Villares sold 646,000 tons of finished products.

The operation was consummated in January, 2006, when the transfer of Sidenor shares to the Company took place and purchase price amounting to Euro 165,828 has been paid.

On March 31, 2006, the Board of Directors approved a bonus to both common and preferred shareholders of 50 bonus

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shares per 100 shares held.

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This excerpt taken from the GGB 6-K filed Jun 13, 2006.

27                      Subsequent event

On November 14, 2005 the Company entered into an agreement to acquire 40% of Corporación Sidenor S.A. (“Sidenor”), a Spanish steel producer with operations in Spain and Brazil. The Santander Group, the Spanish financial conglomerate, and an entity owned by executives of Sidenor entered into an agreement to purchase 40% and 20% of Sidenor, respectively. Purchase price for the acquisition of 100% of Sidenor consists of a fixed price of Euro 443,820 plus a variable price, to be paid only by the Company of approximately Euro 19,500. Santander Group holds a put option to sell their interest in Sidenor to the Company, after 5 years, at a fixed price. Also, the Company has agreed to guarantee to the Santander Group the payment of an agreed amount after 6 years in the event that Santander Group has not sold the shares acquired up to such date or,  if the Santander Group sales its  interest at a price higher or lower than the agreed amount the difference will be paid Santander Group to the Company or by the Company to Santander Group, respectively.

Sidenor is a holding company which holds all outstanding shares of Sidenor Industrial S.L., which is the biggest producer of specialty long steel and forged parts of Spain, as well as one of the most important producers of forged stamp steel in that country. Sidenor Industrial owns three steel producing units, located in Basauri, Vitoria and Reinosa (Spain). During 2004, Sidenor Industrial sold 688,000 tons of finished products. Sidenor Industrial also owns Forjanor, S.L., a stamp forged producer, with industrial facilities in Madrid and Elgeta. During 2004, Forjanor sold 25,000 tons of finished products.

Sidenor also holds a 58.44% stake in Aços Villares S.A., a specialty long steel producer located in Brazil, with industrial facilities located in Mogi das Cruzes, Pindamonhangaba and Socoraba, all cities in the state of São Paulo, Brazil. During 2004, Aços Villares sold 646,000 tons of finished products.

The operation was consummated in January, 2006, when the transfer of Sidenor shares to the Company took place and purchase price amounting to Euro 165,828 has been paid.

On March 31, 2006, the Board of Directors approved a bonus to both common and preferred shareholders of 50 bonus

F-67




shares per 100 shares held.

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This excerpt taken from the GGB 6-K filed Jun 10, 2005.

14           Subsequent event

 

On May 3, 2005, the Board of Directors approved to credit to the shareholders dividends related to first quarter of the current year. The dividends will be credited based on the shares outstanding on May 13, 2005 (R$0.45 per share, equivalent to $0.17 per share at period-end exchange rate). Payment will occur on May 24, 2005 and will be an advance against the annual minimum dividend.

 

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