FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of 12/19/2007
Ternium S.A.
(Translation of Registrant's name into English)
Ternium S.A.
46a, Avenue John F. Kennedy - 2nd floor
L-1855 Luxembourg
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.
Yes No
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not applicable
The attached material is being furnished to the Securities and Exchange
Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange
Act of 1934, as amended.
This report contains Ternium S.A.'s press release announcing Ternium to
sell non-core U.S. assets.
Ternium to Sell Non-Core U.S. Assets
LUXEMBOURG--(BUSINESS WIRE)--Dec. 19, 2007--Ternium S.A. (NYSE:TX)
announced today that its subsidiary, IMSA Acero, S.A. de C.V., has
entered into a stock purchase agreement with BlueScope Steel North
America Corporation, a subsidiary of BlueScope Steel Limited
(ASX:BSL), for the sale of IMSA's interests in Steelscape, Inc., ASC
Profiles Inc., Varco Pruden Buildings Inc. and Metl-Span LLC. Ternium
will continue to own Steelscape's Shreveport, LA plant, which has a
total annual production capacity of approximately 250,000 metric tons
of galvanized steel and 200,000 metric tons of pre-painted steel.
Ternium also will retain its pre-engineered metal buildings and
insulated steel panels businesses in Mexico.
The transaction values the assets at US$730 million on a cash-free
and debt-free basis, subject to working capital and other adjustments.
BlueScope Steel will also assume approximately US$20 million in
under-funded pension liabilities. Ternium intends to use the proceeds
of the sale to prepay financial debt.
The assets being sold accounted for annual net sales of
approximately US$1.2 billion in 2006. Steelscape, excluding the
Shreveport facility, has a total annual production capacity of
approximately 450,000 metric tons of galvanized steel and 300,000
metric tons of pre-painted steel. ASC Profiles and Varco Pruden
Buildings are in the building components and pre-engineered metal
buildings businesses, respectively, while Metl-Span manufactures
insulated steel panels.
Daniel Novegil, Chief Executive Officer of Ternium, said: "By
selling the assets that are not a strategic fit with our production
system, we seek to enhance our focus on our core businesses in the
Americas and reaffirm our commitment to create value through a
disciplined approach to expansion that is consistent with our regional
strategy. Additionally, we are retaining Steelscape's Shreveport
facility, which we believe can be readily integrated into our
operations as we work to achieve the synergies that are expected to
result from our integration of Grupo Imsa."
The transaction is subject to U.S. antitrust clearance and other
customary conditions, and is expected to close in the first quarter of
2008.
Goldman, Sachs & Co. acted as exclusive financial advisor to
Ternium in connection with the transaction.
Forward-Looking Statements
Some of the statements contained in this press release are
"forward-looking statements." Forward-looking statements are based on
management's current views and assumptions and involve known and
unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising
from uncertainties as to gross domestic product, related market
demand, global production capacity, tariffs, cyclicality in the
industries that purchase steel products and other factors beyond
Ternium's control.
About Ternium
Ternium is one of the leading steel companies in the Americas,
offering a wide range of flat and long steel products. With its main
operations in Mexico, Venezuela and Argentina and 25,000 employees,
Ternium has annual sales of approximately US$10 billion and annual
shipments of approximately 12 million tons of finished steel products.
More information about Ternium is available at www.ternium.com.
CONTACT: Ternium S.A.
Investor Relations:
Sebastian Marti, +1-866-890-0443
+52-81-8865-2111 or +54-11-4018-2389
www.ternium.com
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TERNIUM S.A.
By: /s/ Roberto Philipps
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Name: Roberto Philipps
Title: Chief Financial Officer
Dated: December 19, 2007