Itochu’s deal to buy stake in Brazil’s CSN Mineracao implies 26% premium

SAO PAULO : Brazilian steelmaker CSN’s deal to sell a stake in CSN Mineracao to Japan’s Itochu implies a 26 per cent premium over the previous closing price for shares in its mining subsidiary, a securities filing showed late on Wednesday.
CSN announced the deal to sell up to 11 per cent of CSN Mineracao to Itochu early on Wednesday, but did not immediately provide financial details. The price was revealed later in a fresh filing at the request of Brazil’s securities commission.
According to the steelmaker, the price agreed with Itochu for the deal was 7.50 reais per share, above CSN Mineracao’s Tuesday’s closing of 5.95 reais per share.
CSN added that “the form of payment, any adjustments and other conditions of the deal are still being negotiated and have not been defined by the parties.”