TAMPA, Fla. (AP) -- Steel producer Gerdau AmeriSteel Corp. said Wednesday majority shareholder Gerdau SA plans to acquire the remaining shares it does not own in a deal valued at $1.6 billion.
Gerdau AmeriSteel, which is based in Tampa, said Gerdau SA already owns 66 percent of its outstanding shares and intends to buy the rest for $11 per share. It said that represents a premium of 53.4 percent over its June 1 closing price of $7.17.
Gerdau AmeriSteel shares soared $3.94, or 55 percent, to $11.11 in Wednesday morning trading.
RBC Capital Markets was retained to provide an independent valuation and said the share price was fair, according to a statement from Gerdau AmeriSteel. That company's board said it would support a deal at that price.
Gerdau SA, based in Brazil, will fund the deal, which still needs approval from Gerdau AmeriSteel shareholders, with existing cash resources and committed financing.