Brazil steelmaker Companhia Siderurgica Nacional (CSN) has filed a lawsuit to revert an already approved BRL 1 billion capital increase for local flats producer Usiminas, in which CSN has a minority stake as a shareholder.
CSN is said to have filed an injunction last week to revert the capital injection, but since the injunction was denied, CSN expects a local court to judge the merit of the case.
CSN wants the flats steelmaker to transfer BRL 900 million from its mining arm, Mineracao Usiminas (Musa), to Usiminas. It also asks for the annulment of the BRL 1 billion capital increase, as it should dilute and will be harmful for minority shareholders at Usiminas.
CSN has a 17.4 percent stake at the local flats producer.
The judge that ruled against CSN’s injunction last week said if CSN’s claims prove to be true, Usiminas approved BRL 1 billion capital increase could be annulled.