Magnesita Refratários S.A. recently announced a proposed corporate reorganization of the Magnesita Group. In addition to a reorganization of the company’s mining businesses in Brazil, the proposal reportedly includes changes for all of the refractories manufacturing and distribution businesses outside of South America. Specifically, these businesses would be owned by Mag International, a new English entity that would be created as a public limited company (PLC) and traded on the London Stock Exchange. Following the successful implementation of the reorganization plan, Mag International would directly control the Magnesita Group, including Magnesita Refratários, without any changes in assets, net worth or to the indirect control of Magnesita Group, which would continue to be exercised by the current controlling shareholders.

The reorganization plan has four major goals: reinforce Magnesita Group’s position as a global player; strengthen Magnesita Group’s capital structure, enabling better access to financial resources in international markets and reducing its cost of capital; maximize growth opportunities in widespread markets and regions; and maximize the value of the Magnesita Group, benefitting all of its shareholders. The kick-off of the necessary measures for the reorganization was approved by the company’s board of directors on December 21, 2015, though additional approvals (including that of the shareholders) of the final proposal are still required.

For more information, visit www.magnesita.com.