CSN to record $100 mn gain from Corus shares

CSN to record $100 mn gain from Corus shares
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First Published: Fri, Mar 30 2007. 04 20 PM IST
Updated: Fri, Mar 30 2007. 04 20 PM IST
PTI
Brazilian steel maker CSN, which had rivalled Indian giant Tata Group’s takeover bid for Corus, will record a net gain of about $100 million from the sale of shares it had accumulated in the Anglo-Dutch firm.
Despite losing the battle for Corus as well as the takeover of US-based Wheeling Pittsburgh in the recent past, the Latin American firm today asserted it remains committed to emerge as a leading global player in steel space and would continue with its overseas expansion plans.
As part of its global ambitions, CSN plans to export iron ore to leading consuming markets in Asia, Europe and the Middle-East.The Sao Paulo-based firm said in a statement it would sell its 3.8% stake in Corus, which it had bought for about $345 million, later this year. The company was outbid by Tata Steel with a winning bid of 608 pence a share in a nine-round auction for Corus held on 31 January.
It anticipates total proceeds of about $445 million from sale of these shares at 608 pence a share.The Brazilian firm would also receive a disengagement fee of about $120 million from Corus, as its offer had been approved by the board of the UK-listed firm.
CSN reported 12% jump in its fourth-quarter revenue to 1.26 billion dollars, taking the annual net revenue for 2006 to over $4.40 billion.The company said it aims to become the world’s fourth largest iron ore exporter this year, after kick-starting its global market foray with first shipment to Bahrain last month.Talking about India, CSN said economic growth in China and India, which continued to record significant jump in output, have a significant impact on global steel market.
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First Published: Fri, Mar 30 2007. 04 20 PM IST
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