Lupatech S.A. (LUPAY: OTC Link) | Lupatech receives Binding Proposal for the sale of Steelinject, a unit of the Metallurgy segment

Lupatech receives Binding Proposal for the sale of Steelinject, a unit of the Metallurgy segment

Oct 13, 2011

OTC Disclosure News Service

Sao Paulo, Brazil –

LUPATECH S.A.

Corporate Taxpayer’s ID (CNPJ/MF): 89.463.822/0001-12

Company Registry (NIRE): 43300028534

Publicly-held Company – Novo Mercado

 

MATERIAL FACT

Lupatech receives Binding Proposal for the sale ofSteelinject,

a unit of the Metallurgy segment

Caxiasdo Sul, October 13, 2011Lupatech S.A.(BMFBOVESPA: LUPA3) (OTCQX: LUPAY) (Lupatech Finance LTD 97/8Perpetual Bonds: ISIN USG57058AA01) (“Lupatech” or “Company”), leading Braziliansupplier of manufactured products and services for the oil and gas sector,announces that has received from the Executive Management of Forjas Taurus S.A.(“Forjas Taurus”)a binding proposal (“proposal”) for the sale of Steelinject Injeçãode Aços Ltda. (“Steelinject”) in the total amount of R$14 million,subject to a due diligence process and to be concluded in up to 45 days.

The Management willrecommend to the Board of Directors to accept the proposal. The sale ofSteelinject, a unit of the Metallurgy segment, is part of the process for therationalization of the Company’s structures, where we seek to focus in the oiland gas assets, optimize the corporate structure and generate better returns toour shareholders.

The proposal comprises the acquisitionof 100% of Steelinject by Forjas Taurus in the amount of R$14million, excluding the financial debt in the amount of R$1.8 million. Thisunit represented in 2010, 2.1% of Lupatech’s Net Revenues and 3.9% of theEBITDA.

Steelinject produces partsthrough the power injection molding (PIM) process mainly for the automotive,armament and dentistry sectors, having important strategic value for thebusiness of Forjas Taurus.

Steelinject will be subjectto a due diligence process to be concluded in 15 (fifteen) days counted from thedelivery of the necessary documentation. After the conclusion of this process,it will be signed a Contract for the Cession and Transfer of Ownership of thequotas of Steelinject in up to 30 (thirty) days.

The conclusion of the saleof Steelinject is subject to the necessary approvals.

Lupatech,through its Investor Relations Department, is available for any clarificationsthrough the contacts below.

 

Investor Relations –Contacts

 

AlexandreMonteiro – CEO

Cynthia Burin – InvestorRelations

 

Telephone: +55 (11) 2134-7000 or +55 (11) 2134-7088                              

E-mail:ir@lupatech.com.br

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/LUPAY/news?id=36697

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