Brazil´s Fundação Vale do Rio Doce de Seguridade Social (Valia) has sold 6,906,056,995 common shares, representing 9.3 per cent of the capital stock, of Brazilian steel producer of Companhia Siderúrgica Nacional (CSN) in a secondary public auction. The transaction closed on April 7 and involved a total amount of R$450.6 million (US$156.4 million).
The transaction was preceded by a bookbuilding procedure in order to determine the minimum price and total number of common shares to be sold in the scheduled auction. This was the first time in Brazil that a secondary public offering of shares through an auction on the São Paulo Stock Exchange (Bovespa) made use of this process.
A minimum price of R$60 per 1,000 common shares was established in the bookbuilding procedure prior to the auction. Demand for the stock pushed the final price up to R$65.25 per 1,000 shares, an increase of 8.75 per cent. Banco Merrill Lynch de Investimentos SA acted as coordinator, whilst Merrill Lynch SA Corretora de Títulos e Valores Mobiliários intermediated the offering, as broker. BB Banco de Investimento SA and Banco Bradesco SA were the selling agents.
CSN is one of the largest integrated steel producers of Latin America. It produces a wide range of steel products and operates its own iron ore, limestone, and dolomite mines, which service the needs of its plants. Valia is the pension fund of Brazilian mining giant CVRD.
Machado, Meyer, Sendacz e Opice Advogados acted as Brazilian counsel to the managers, through partner Carlos José Rolim de Mello, and associates Flávio Roberto Penteado Meyer and Fionna Tsu.
Sources: Latin Lawyer on line 05.20.2003
Date of insertion: 20/05/2003 - 19:12:52