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Tenaris – TS – Accomplishes Confab Delisting

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Tenaris S.A. (NYSE: TS) announced that, at the auction for its delisting tender offer to acquire all of the ordinary and preferred shares held by the public in its Brazilian subsidiary Confab Industrial S.A., or Confab, first announced on January 18, 2012, a total of 216,269,261 Confab shares were tendered. As a result, TS attained the requisite threshold to delist Confab from the São Paulo Stock Exchange.

The final cash price paid in the auction was Brazilian reais, or BRL, 5.90 per ordinary or preferred share (or approximately US$3.14 per ordinary or preferred share). Subsequent to the auction, Tenaris (TS) acquired 6,070,270 additional Confab shares in the market at the same price. TS’s total investment in Confab shares pursuant to these transactions amounts to BRL1,311.8 million, or approximately US$697.4 million.

Upon settlement of the offer and the subsequent purchases on April 26, 2012, Tenaris will hold in the aggregate approximately 95.9% of Confab.


Under applicable Brazilian rules, the remaining holders of Confab shares will have the option to sell their shares to the offeror at the same price paid to the tendering shareholders (adjusted by Brazil’s SELIC rate) at any time during the 90-day period following April 23, 2012. In addition, Confab will have the right to redeem the remaining shares at the same price paid to the tendering shareholders (adjusted by Brazil’s SELIC rate); upon completion of such redemption, Confab will become a wholly-owned subsidiary of Tenaris.

The aggregate amount payable for the remaining Confab shares (currently totaling 16,617,646 shares, or approximately 4.1% of Confab’s share capital) will be approximately BRL98 million, or approximately US$52.1 million.

Tenaris (TS) is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Tenaris SA is a Luxembourg-based holding company engaged in the steel pipe manufacturing and distributing businesses. The Tubes segment includes the operations comprises the production and selling of both seamless and welded steel tubular products and related services, mainly for energy and industrial applications. The Company is involved in the production of offshore and onshore line pipes, drill pipes, pipe accessories, sucker rods, perforating guns, sand screens, downhole drill motors. It also offers services for its products. The Projects segment includes the operations which comprise the production and selling of welded steel pipe products, mainly used in the construction of major pipeline projects. The Company operates through numerous subsidiaries in Canada, the United States, Mexico, Brazil, Chile, Colombia, Argentina, Uruguay, Italy, Luxembourg, the United Kingdom, Switzerland, Japan, Indonesia, among others.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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