Gerdau Ameristeel Corp. (GNA on NYSE) and Brazilian steelmaker Gerdau SA have reached agreement on the previously announced deal that would have Gerdau taking the Tampa based steelmaker private.
Gerdau and Gerdau Ameristeel, which has a mill in Knoxville, have “entered into a definitive arrangement agreement to implement” Gerdau’s plan to pay $11 per share to buy all of the Gerdau Ameristeel stock that it doesn’t already own, according to an announcement.
Gotta love that language — “entered into a definitive arrangement agreement to implement”. They couldn’t just say they have a deal? But I digress.
The companies announced last month that Gerdau wanted to buy out Gerdau Ameristeel for about $1.6 billion. The Brazilian company already owns 66 percent of Gerdau Ameristeel stock.
The deal has been approved by the Gerdau Ameristeel board of directors. Shareholders will get their say on Aug. 10. Shareholders who owned stock as of June 18 are eligible to vote.
If shareholders approve the sale, the company’s transition to private ownership would be completed in August.
The deal shouldn’t have any impact on the Knoxville mill.