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Gerdau Ameristeel will be taken private by Gerdau S.A., the firm's Brazil-based parent company, in a deal proposed earlier this month.
Gerdau S.A., which already owns 66.3% of Tampa-based Gerdau Ameristeel, will buy all other shares of the company for $11 per common share, setting the American company's total value at approximately $1.6 billion.
The board of directors at Gerdau Ameristeel has unanimously approved the deal, a release said, and is encouraging other shareholders to support the transaction.
When officials at Gerdau S.A. first announced their intent to buy out Gerdau Ameristeel completely, the company argued that the transaction would reduce debt-servicing costs, in part because the American company would benefit from Gerdau S.A.'s superior credit ratings.
With the deal, the corporate landscape in Tampa continues to shrink, as later this year Walter Energy will relocate to Alabama.
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