Venezuela:
FIV Closed the SIDOR Negotiation
with Siderurgia Amazonia Consortium
Source: Venezuelan Investment Fund - FIV (http://www.fiv.gov.ve)
Caracas, 27 January 1998. On Tuesday, 27 January, the Venezuelan Investment Fund transferred the ownership of 70% of the shares of the Siderurgica del Orinoco, C.A. Sidor, to the Siderurgia Amazonia Consortium Ltd., the successful bidder in the offers presented on 18 December.
On this occasion, the winning group paid the purchase price of US$ 1,202,020,201.90 via an electronic bank deposit to the account designated by the FIV. This amount is equivalent to Bs. 610,626,262,565.50 at the Venezuelan Central Bank's official exchange rate in force on the date of payment (508.00 Bs./US$).
This complied with clauses 2.2 and 7.2 of the sales contract, which establish the definition of the purchase price, the amount of form of payment by the purchaser to the seller. In this act closing the negotiation, after faithful compliance was confirmed, the parties proceeded to sign the documents, including the minutes of the Special Assembly of Sidor shareholders, which registers the signature and transfer of the ownership of 70% of the shares, owned by the FIV, CVG and the Finance Ministry, in favour of the Siderurgia Amazonia Consortium Ltd. and the declaration of the entry into force of the company's new by-laws.
The incorporation of the purchasing group, Siderurgia Amazonia Consortium Ltd., was also entered in the Assembly and Shareholders books, as well as the appointment of the new members of the Board of Directors, with the Venezuelan Adan Celis as President of the Board of Directors. The new Executive President, Daniel Novegil, is a professional with vast experience in the Latin American iron and steel industry, appointed to handle Sidor operations.
The Special Assembly of Sidor was attended by the President of the Venezuelan Investment Fund, Alberto Poletto; Finance Minister Freddy Rojas Parra; the President of the Venezuelan Corporation of Guayana, Elias Nadim Ynaty, and the outgoing President of Sidor, Alfredo Rivas Lairet, who chaired the meeting. Alejandro Elizondo, the president of Siderurgia Amazonia Consortium, the company to which the Sidor shares were transferred, and other members of the investment group were also present.
On Wednesday, 28 January, the new Sidor shareholders planned to go to Puerto Ordaz to install the Board of Directors with the new owners of Sidor, and to hold a series of meetings with the authorities of the Venezuelan Corporation of Guayana and the different government and business sectors in the region.
