Nippon Steel & Sumitomo Metal Corporation (NSSMC), a major shareholder in Brazilian flats producer Usiminas, said on Thursday it will appeal the appointment of Sergio Leite as Usiminas’s CEO.
According to the company, which has been fighting with shareholder Ternium to assume the control of Usiminas, the nomination of Leite didn’t comply with the shareholders’ agreement, since the indication was made without prior consent of NSSMC.
“The resolution for the appointment of the members of the board of officers [BoO] including the CEO was made without prior consent of NSSMC.”
“NSSMC believes that this is clearly in violation of the Shareholders’ Agreement of Usiminas, which requires the prior consensus between NSSMC and Ternium group for the appointment of the CEO and other members of the BoO,” Nippon Steel said, adding the decision was “invalid” and as such it “will take all necessary legal measures to seek among others to annul the resolution.”
Nippon Steel said Usiminas situation is “very critical” and “significant changes to the management team under such critical situation could jeopardize Usiminas’s efforts for its turnaround and would be against the best interest of Usiminas and its stakeholders.”