Tenaris announced that it has withdrawn its request for approval regarding the proposed delisting of Confab Industrial, which is currently listed on the Sao Paulo Stock Exchange. The company is a leader in Brazil in the production of welded pipes (OCTG, line pipes, pipes for the mining sector).
As previously reported by SteelOrbis, on 29th August the company controlled by the Rocca Group (Techint) had offered shareholders R$5.2 for each share, with a 35 percent premium if one considers the volume weighted average price of shares traded in the previous 20 days. According to Brazilian law, however, if at least 10 percent of shareholders asks for a second evaluation, the company is obliged to guarantee it.
Tenaris, while confirming the validity of its first offer, indicated it has received "indications that a significant number of minority shareholders will not accept the offer at the current price", and has therefore decided to withdraw its application for delisting.