the Argentine steel group Tenaris has closed the acquisition of a subsidiary of IPSCO Tubulars Russian Pipe metallurgical company (TMK) for 1,067 billion. In accordance with the agreement, on January 2, 2020 Tenaris for six years, it has become the exclusive distributor of OCTG (oil country tubular) and line of OCTG, TMK in the United States and Canada, specified in the message Tenaris.
In PMC, said that the sale of a metallurgical plant in Houston was held in the framework of the company development strategy and create additional value for shareholders.
"the monies will provide financial stability and further development", — said the Chairman of the Board of Directors of TMK Dmitry Pumpyansky.
After closing the TMK management intends to reconsider the dividend policy of the company, whereby the company pays a dividend in the amount of not less than 25% of consolidated IFRS net profit, to make it "more stable and predictable."
the transaction Price under the contract of sale concluded on 22 March 2019, amounted to 1 billion 209 million dollars excluding cash and debt on the balance sheet, but included a $ 270 million US in working capital. Financial Advisor on the transaction was made by BTIG, LLC, a legal adviser to the transaction on the part TMK — Latham & Watkins LLP.
the sale Of IPSCO Tubulars Tenaris became known in March 2019. The final price was determined taking into account the fact that TMK will repay all the debts and displays the cash balance, the company informed Tenaris. IPSCO Tubulars will be consolidated on the balance sheet Tenaris from the first quarter of 2020.
the Company hoped to close the deal by the end of 2019, the approval of the transaction by the US Department of justice was received in late December.
TMK is the largest Russian manufacturer of pipes, is among the three leaders of the global pipe business. Dmitry Pumpyansky owns 65,05% of the company through TMK Steel Holding Ltd.
