Brazil's CSN signs term sheet to sell German unit to Spain's Megasa for $616 million
SID•CSN signed a binding term sheet to sell Germany-based Stahlwerk Thüringen to Megasa's controlling shareholder for an enterprise value of €550 million ($616 million). The term sheet provides up to 10 weeks of exclusivity to negotiate definitive terms.
1. Sale terms
CSN said in a securities filing that the binding term sheet sets key terms and conditions for the potential sale and provides an exclusivity period of up to 10 weeks to negotiate definitive terms.
2. Unit and debt program
Stahlwerk Thüringen, known as SWT, produces long steel and has installed capacity of 1.1 million metric tons per year. CSN said the potential sale is “another important step” in its divestment program aimed at reducing current debt leverage. CSN acquired the German unit in 2012 for €482.5 million.
