Tenaris Moves to Delist Brazil’s Confab

Tenaris plans to delist Brazilian steel pipe maker Confab and make a public share purchase offer that could cost it up to BRL1.24bn ($775m). The Luxembourg-based steelmaker, which is controlled by Argentina’s Techint, is offering minority holders BRL5.20 per ordinary and preferred shares, which it says is a 35% premium to the 20-day average price. It represents a 7.0% premium to Monday’s BRL4.88 closing price. The offer would indicate a BRL1.24bn purchase if all holders accept. Tenaris owns 99% of Confab’s ordinary shares, representing 99% of voting rights and 41% of the share capital. It does not indicate when it expects to launch the offer, which still awaits regulatory approval. Tenaris has held a controlling stake in Confab, which operates under the TenarisConfab brand, since 1999.