Grupo Simec, S.A.B. de C.V., one of the largest producers of Special Bar Quality (“SBQ”) steel in North America, has completed a $217 million SEC registered secondary stock offering.  The offering was the first SEC registered offering of equity securities by a Mexican issuer in 2007. 

Thacher Proffitt & Wood LLP  represented Grupo Simec through partners Marc M. Rossell and Walter G. Van Dorn, Jr. and associates Amelia G. Baker and Jimena Gonzalez de Cossio.

Milbank, Tweed, Hadley & McCloy LLP represented Citigroup Global Markets in the transaction.  The Milbank team representing the underwriters was led by partners Michael Fitzgerald and Taisa Markus with associates Armando Valdes and Melinda Creasman and international attorney Jorge Oria.  Tax advice was provided by partner Bruce Kayle. 

Milbank’s Fitzgerald noted, “The success of this offering reflects the continued strength of the Mexican equity market and the premium placed on Mexican manufacturing companies that service the NAFTA region.  Grupo Simec derives most of its revenues from the U.S. operations of the prior Republic Steel Company that it acquired last year.  Milbank’s participation in the transaction builds on its involvement in the 2004 Mexican initial public offering and 144A offering of Industrias CH, the majority shareholder of Grupo Simec and one of the largest steel companies in Mexico.”

The local law firms involved were Mijares, Angoitia, Cortes y Fuentes, S.C. thorugh Ricardo Maldonado Yañez, Martin Sanchez Breton and Adriana Morales Figueroa; and Creel, García-Cuéllar y Müggenburg, S.C., through Jean Michel Enriquez and Cassandra Franco.

About the Offering:

The $217 million offering consisted of an SEC registered offering of ADSs and a Mexican public offering of the underlying Series B Shares. The offering was underwritten by Citigroup Global Markets Inc. and co-managed by Morgan Stanley.  Acciones y Valores Banamex, S.A. de C.V., Casa de Bolsa Integrante del Grupo Financiero Banamex and Ixe Casa de Bolsa, S.A. de C.V., Ixe Grupo Financiero, acted as joint bookrunners in the Mexican tranche.  The proceeds of the offering will be used for general corporate purposes.

Grupo Simec, S.A.B. de C.V. [Amex: SIM] is a diversified manufacturer, processor and distributor of special bar quality (“SPQ”) steel and structural products with production and commercial operations in the United States, Mexico and Canada.  In 2005 Grupo Simec acquired a controlling interest in Republic, a leading U.S. producer of SBQ steel.  Grupo Simec is a subsidiary of Industrias CH, S.A. de C.V.