Brazil's Metalúrgica Gerdau aims to raise $319 mln in private offer
SAO PAULO Oct 29 (Reuters) - Metalúrgica Gerdau SA, the investment holding company that controls Brazilian steelmaking group Gerdau SA, unveiled on Thursday a plan to sell 500 million shares in a private transaction.
The company will offer 170 million common and 330 million preferred shares in a process known as restricted-effort offering, Gerdau said in a securities filing. At current prices, the offering could raise about 1.24 billion reais ($319 million), according to Thomson Reuters calculations.
Public offerings with restricted efforts differ from standard equity offerings in that a company does not have to request registration of the plan with securities industry watchdog CVM, only qualified investors can participate, and the deals cannot be marketed through road shows or the media. (Reporting by Walter Brandimarte and Guillermo Parra-Bernal; Editing by Chizu Nomiyama)
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