Ternium Announces Completion of Usiminas' Capital Increase Process

LUXEMBOURG--(BUSINESS WIRE)--

Ternium S.A. TX announced today that, following the completion of the subscription process in connection with the previously-announced issuance of 200 million ordinary shares of Usinas Siderúrgicas de Minas Gerais – Usiminas at BRL5.0 per share, Usiminas' extraordinary general shareholders' meeting homologated the resulting BRL 1 billion capital increase and authorized the issuance of such ordinary shares.

Throughout the various stages of the subscription process, Ternium and its subsidiaries Siderar and Prosid have subscribed, in the aggregate, to 76.4 million ordinary shares for a total amount of BRL382.2 million (approximately USD110.9 million). In addition, on April 20, 2016, Ternium and its subsidiaries subscribed, in the aggregate, to 8.5 million preferred shares for a total amount of BRL10.9 million (approximately USD3.1 million).

Following the issuance of these ordinary shares, Ternium and its subsidiaries will own a total of 242.6 million ordinary shares and 8.5 million preferred shares, representing 20.5% of Usiminas' capital, and the T/T Group (including Ternium, Siderar, Prosid and Tenaris S.A.'s subsidiary Confab) will own 39.6% of Usiminas' ordinary shares and 1.8% of Usiminas' preferred shares.

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 a leading steel producer in Latin America, with an annual production capacity of approximately 11.0 million tons of finished steel products. The company manufactures and processes a broad range of value-added steel products for customers active in the construction, automotive, home appliances, capital goods, container, food and energy industries. With production facilities located in Mexico, Argentina, Colombia, the southern United States and Guatemala, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. In addition, Ternium participates in the control group of Usiminas, a Brazilian steel company. More information about Ternium is available at www.ternium.com.

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