An Usiminas shareholder has filed a legal claim alleging that contracts with controlling shareholder Nippon Steel & Sumitomo Metal Corp, which inexplicably rose ten-fold in the past five years, damaged the ailing Brazilian steelmaker’s finances.
The claim, filed on Monday, questioned the nature of 19 billion reais ($5.4 billion) of so-called related-party contracts between Usinas Siderúrgicas de Minas Gerais SA and subsidiaries of Nippon Steel. Usiminas’ outdated plants failed to benefit from expensive contracts for technology and equipment transfer from their Japanese part-owners.
They said the legal action was attached to a lawsuit already filed by minority shareholder Cia Siderúrgica Nacional SA, which wants courts to block a capital injection plan approved by the board of Usiminas last week.
Full Content: Reuters
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