CSN spent $50 mn, gained $200 mn
Even after excluding taxes and expenses incurred, the gains related to Corus totalled over $125 million.
By PTI |
NEW DELHI: Brazil's CSN, which had countered Indian giant Tata Steel's takeover of Corus Group, spent over $50 million on its failed bid but gained more than four times that amount after pulling out.
CSN on Wednesday reported its biggest ever quarterly profit in five years at 763 million Brazilian reais (about $380 milllion) for the January-March 2007 quarter, which more than doubled from 340 million reais a year ago.
This included a gain of over $200 million from its participation in the Corus bidding process, more than half of its first quarter profits.
The gains included 182 million reais from its sale of 3.8 per cent stake in Corus and a break-up fee of 235 million reais from the UK-based firm for once accepting its bid before finally being acquired by Tatas.
Even after excluding taxes and expenses incurred, the gains related to Corus totalled 255 million reais (over $125 million), which was over 33 per cent of the company's net income for the just ended quarter.
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CSN acknowledged in its quarterly results statement that besides higher steel prices and increased sales volumes, its higher bottom-line figures were also driven by sale of Corus stake and the break-up fee received for its takeover bid.The company's sale of 3.8 per cent stake for 182 million reais resulted in after-tax gains of 133 million reais.
Besides, as part of an agreement with Corus in December when the UK-based firm's board had accepted CSN's bid, the company booked a break-up fee corresponding to one per cent of final offer for Corus, resulting in net gain of 122 million reais after deducting the acquisition expenses.
Consolidated expenses incurred during the acquisition process stood at 113 million reais, the company said.
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