Ternium – Investor Relations
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Ternium seeks to rationalize its corporate structure by proposing to acquire the minority stake in Ternium Mexico which it does not directly own
Luxembourg, December 21, 2021 – Ternium SA (NYSE: TX) today announced a $ 1.0 billion offer to
acquire from its listed subsidiary Ternium Argentina SA (BYMA: TXAR) a 28.73% stake in Ternium Mexico SA de CV that Ternium does not own directly.
Ternium currently directly owns 71.27% and 62.49% of Ternium Mexico and Ternium Argentina, respectively, and fully consolidates the assets, liabilities and results of operations of the two companies. Ternium Argentina is listed on the Argentine Stock Exchange (BYMA) and its main shareholder excluding Ternium is the National Social Security Administration of Argentina, with a 26.43% stake. No other shareholder holds more than 5% of the shares of Ternium Argentina.
The proposed transaction would be subject, among other conditions, to its approval by the general meeting of shareholders of Ternium Argentina with the affirmative vote of 95% of the shareholders present (excluding Ternium) and to the simultaneous approval by Ternium Argentina of a dividend. of $ 900 million.
“This transaction is primarily aimed at streamlining our corporate structure,” said Máximo Vedoya, CEO of Ternium. “A simplified corporate structure contributes to simpler management of our operations and easier analysis by our stakeholders of our performance and results. We will continue to seek opportunities to add value to our shareholders.
If approved by Ternium Argentina’s general meeting of shareholders, the transaction is expected to close in the first quarter of 2022.
Ternium is the leading producer of flat steel in Latin America, with operating facilities in Mexico, Brazil, Argentina, Colombia, the southern United States and Central America. The company offers a wide range of high value-added steel products for customers in the automotive, home appliance, HVAC, construction, capital goods, containers, supply and energy through its manufacturing facilities, service centers and distribution networks, as well as its advanced customers. integration systems. More information on Ternium is available at www.ternium.com.
Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on the current beliefs and assumptions of management and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by such statements. These risks include, but are not limited to, risks arising from uncertainties about gross domestic product, related market demand, global production capacity, tariffs, the cyclicality of the industries that purchase steel products and the other factors beyond Ternium’s control.