The purchase price for this 26.87% stake is a symbolic one. In addition, Vale receives a debtor warrant if ThyssenKrupp finds a buyer for the entire operation. According to ThyssenKrupp, this transaction will not result in any revaluation of its stake. We wonder why this deal does not result in an impairment charge. All existing contracts between the two companies (e.g. for the delivery of iron ore) will be renegotiated.
05 Apr 2016
ThyssenKrupp buys Vale’s minority stake in Steel Americas back
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ThyssenKrupp buys Vale’s minority stake in Steel Americas back
thyssenkrupp AG (TKR:WBO) | 0 0 0.4% | Mkt Cap: 14,231m
- Published:
05 Apr 2016 -
Author:
Hans-Peter Wodniok -
Pages:
2
The purchase price for this 26.87% stake is a symbolic one. In addition, Vale receives a debtor warrant if ThyssenKrupp finds a buyer for the entire operation. According to ThyssenKrupp, this transaction will not result in any revaluation of its stake. We wonder why this deal does not result in an impairment charge. All existing contracts between the two companies (e.g. for the delivery of iron ore) will be renegotiated.