Icahn Enterprises L.P. Announces Definitive Agreement to Sell Ferrous Resources Limited, At Enterprise Value of Approximatel...
December 05 2018 - 5:01PM
Icahn Enterprises L.P. (NASDAQ: IEP) ("Icahn Enterprises")
announced that on December 4, 2018, its majority-owned subsidiary,
of which we own 77%, Ferrous Resources Limited,
Inc. (“Ferrous”), entered into a definitive agreement to merge
with a wholly-owned subsidiary of Vale S.A., for total
consideration of approximately $550 million (including indebtedness
that will be repaid at closing).
Icahn Enterprises first acquired an interest in Ferrous in 2012,
and subsequently acquired its controlling interest in 2015.
Even under challenging circumstances created by volatile
commodity markets over the past several years, we deployed our
activist modus operandi and guided the company through turbulent
times. Given the company’s challenging cash-flow position
just a few years ago, we believe today’s transaction represents a
very positive outcome for IEP shareholders.
Carl C. Icahn, Chairman of Icahn Enterprises, stated: “As
committed, long-term investors, we stood by Ferrous and invested
additional capital in the form of both debt and equity, moved
forward with critical growth capex projects and did all of this at
a time when others were fleeing the sector. By investing
additional capital and leading the company with a strong and
effective Board of Directors, we were able to stabilize and improve
Ferrous’ situation, which laid the groundwork for this
transaction.”
The transaction is expected to close in 2019, subject to
receiving antitrust approval in Brazil, and other customary closing
conditions. The transaction is not subject to due diligence or
financing conditions.
About Icahn Enterprises L.P.
Icahn Enterprises, a master limited partnership, is a
diversified holding company engaged in eight primary business
segments: Investment, Automotive, Energy, Mining, Food Packaging,
Metals, Real Estate and Home Fashion.
Caution Concerning Forward-Looking
Statements
This release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, many of which are beyond our ability to control or
predict. Forward-looking statements may be identified by words such
as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," "will" or words of similar meaning and
include, but are not limited to, statements about the expected
future business and financial performance of Icahn Enterprises
L.P. and its subsidiaries. Actual events, results and outcomes
may differ materially from our expectations due to a variety of
known and unknown risks, uncertainties and other factors, including
risks related to economic downturns, substantial competition and
rising operating costs; risks related to our investment activities,
including the nature of the investments made by the private funds
in which we invest, losses in the private funds and loss of key
employees; risks related to our ability to continue to conduct our
activities in a manner so as to not be deemed an investment company
under the Investment Company Act of 1940, as amended; risks related
to our automotive activities, including exposure to adverse
conditions in the automotive industry, and risks related to
operations in foreign countries; risks related to our energy
business, including the volatility and availability of crude oil,
other feed stocks and refined products, unfavorable refining margin
(crack spread), interrupted access to pipelines, significant
fluctuations in nitrogen fertilizer demand in the agricultural
industry and seasonality of results; risks related to our mining
operations, including the volatility of the global price of iron
ore and global demand levels for iron ore; risks related to our
food packaging activities, including competition from better
capitalized competitors, inability of its suppliers to timely
deliver raw materials, and the failure to effectively respond to
industry changes in casings technology; risks related to our scrap
metals activities, including potential environmental exposure;
risks related to our real estate activities, including the extent
of any tenant bankruptcies and insolvencies; risks related to our
home fashion operations, including changes in the availability and
price of raw materials, and changes in transportation costs and
delivery times; and other risks and uncertainties detailed from
time to time in our filings with the Securities and Exchange
Commission. Past performance in our Investment segment is not
indicative of future performance. We undertake no obligation to
publicly update or review any forward-looking information, whether
as a result of new information, future developments or
otherwise.
Contact: Investor Contact: SungHwan Cho Chief
Financial Officer (212) 702-4300
Source: Icahn Enterprises L.P.
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