On the day that the CSN signs the extension of its exclusivity contract in the negotiation for the purchase of InterCementthe company announced the sale of 11% of CSN Mineração. Intuitively, everything would lead us to believe that the Benjamin Quarry took another step to buy the cement plant. But that’s not the case, warn sources close to the company.
Although CSN is, in fact, committed to buying its competitor, what will finance the eventual purchase of InterCement is the cement company’s own debt (we will explain later).
This Wednesday (16), CSN, which holds 80% of CSN Mineração, closed a non-binding agreement to sell a stake of up to 11% to the Japanese company Itochu. This slice is valued at around R$3.6 billion, and the objective of the deal, according to sources, is to reduce the company’s leverage, something that has been promised to investors for a few months.
READ MORE: CSN renews (once again) exclusivity contract for the purchase of InterCement
CSN’s leverage, measured by the ratio between net debt and Ebitda, reached 5.8 times at the end of June. This high leverage led S&P Global Ratings to reduce the outlook on CSN’s credit ratings from stable to negative in August. CSN’s global credit rating is ‘BB’ and its national credit rating is ‘brAAA’.
At the same time, CSN Cimentos continues in negotiations for the acquisition of InterCement. In May, the company made an offer of R$10 billion for the company controlled by Mover (formerly Camargo Corrêa). In the operation, CSN must assume the debt that Mover has with banks.
As reported by the InvestNewsthere is a divergence of values in relation to this debt, and this is what has delayed the negotiation process. But CSN has time, sources say. And it continues to monitor Mover’s negotiations with creditors, in what should unfold towards an extrajudicial recovery.
