Ternium Argentinathe steel company Techint groupreceived double news by the Superior Court of Justice of Brazil. On the one hand, the judges They rejected an appeal for clarification that the company had presented in a lawsuit that pits it against the Brazilian Companhia Siderúrgica Nacional (CSN) for the purchase of Usiminas shares in 2011.
On the other hand, almost like a consolation prize, the High Court revised downwards the amount of compensation that the Argentine company should pay and determined it at the equivalent of $109 million.
This is not a minor fact, since the amount at stake that had been determined by a ruling issued in May of this year amounted up to an estimated maximum of US$2,000 millionas reported by Ternium itself in a communication to the National Securities Commission.
With that figure as a limit, the fine calculation of the sentence had been placed around the US$927 million in the middle of this year. Now, in a new ruling released last Friday in Brazil, the amount was reduced to US$109 million, also as reported by Ternium to the CNV.
What the steel company of the Techint group said about the dispute with CSN
“The Superior Court of Justice of Brazil of the Federative Republic of Brazil (TSJ) published today its unanimous decision to reject the appeal for clarification presented by Ternium Argentina SA (“Ternium Argentina” or “the Company”) together with Ternium’s subsidiary, Ternium Investments, and with Confab Industrial SA, a subsidiary of Tenaris SA (all of which make up the so-called T/T Group under the agreement of shareholders of Usinas Siderúrgicas de Minas Gerais SA – USIMINAS),” Ternium reported to the CNV on Friday.
And he added that the presentation that was rejected “was intended reverse the decision of the TSJ of June 18, 2024 that ordered the T/T Group pay compensation to Companhia Siderúrgica Nacional (“CSN”) in relation to the acquisition by the T/T Group of an interest in Usiminas.”
Next, the steel company of the Techint group clarified that “without prejudice to the aforementioned, the TSJ resolved, also unanimously, modify the applicable monetary adjustment mechanism, as well as limit attorneys’ feesthus reducing the total amount that would be payable by the T/T Group to CSN andIn case the latter prevails in their claims.”
“Assuming monetary adjustment until November 30, 2024 and setting the amount of attorneys’ fees at BRL5 million, in each case as determined in accordance with the decision of the TSJ published today, The amount potentially payable by Ternium Argentina would be approximately BRL 700 million (approximately US$109 million)”he added.
Beyond these considerations, Ternium highlighted that “the Company, as well as the rest of the members of the T/T Group, continue to consider that all claims and allegations of CSN are unfounded and devoid of meritand that in relation to the acquisition of Usiminas, the T/T Group was not obliged to make a public acquisition offer or to pay any compensation to CSN.
“Consequently, Ternium Argentina intends to scontinue to vigorously defend your rights and file all available remedies and appeals against the decisions of the TSJ that have ordered the payment of compensation,” he concluded.
The dispute with CSN originated with Ternium’s 2011 purchase of what then amounted to a 27.7% stake in Usiminas shares.
CSN, which at the time owned 12.9% of the company’s shares, filed a lawsuit alleging that Ternium should have launched a takeover bid of papers owned by minority shareholders.
Then the TSJ agreed with him, alleging that the operation should have complied with Brazilian legislation and not with the interpretation made by the Argentine steel company.
Source: Ambito
