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Techint lost 76% of investment on Brazilian Usiminas.
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It is reported that Brazil’s second biggest steelmaker Usiminas makes Techint Group lost 76% of its investment on it.
Techint Group paid BRL36 per share in last November to acquire 27.7% stake in Usiminas, but the company’s value per share dropped to BRL8.7 on June 8th this year.
The reason of the lost is due to Usiminas’s underperformance, mainly caused by the global steel glut and lower demand.
An analyst said that Techint is trying to find a way to revert this situation as soon as possible but the options are limited, obviously there is no clear recovery this year.
Usiminas reported a net loss of BRL70.8 million in Q1, the worst one within 3 years, due to the declined sales revenue and weak Brazilian reais.
News Date
6/15/2012 8:53:07 AM
reported by
Raul Lee
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