RIO DE JANEIRO, BRAZIL, September 28 /CNW/ - MMX Mineracao e Metalicos
S.A. ("MMX") (Pink Sheets: MMXMY) (TSX:XMM) (BOVESPA:MMXM3), pursuant to
Article 157 of Law #6,404/76 and CVM Instruction 358/02, hereby makes the
On September 27, 2007, MMX, LLX Logistica S.A. ("LLX") and Ontario
Teachers' Pension Plan Board ("OTPP"), a Canadian pension fund, entered into
definitive agreements providing for the subscription and purchase of 15% by
OTPP of the issued and outstanding shares of LLX, in preferred shares, for a
price of US$185.0 million (the "Investment"). Financial closing of the
Investment is subject to customary conditions and is expected to occur in the
The investment implies a valuation of MMX's remaining 85% common shares
interest in LLX of approximately US$1.05 billion. The proceeds of the
Investment will be used to develop non-iron ore port handling activities at
the Acu Port, in the State of Rio de Janeiro, develop an industrial complex
located in the retro-area of the Acu Port, fund the acquisition of the Brasil
Port, in the State of Sao Paulo, and of the Sudeste Port, in the State of Rio
de Janeiro. The Brasil Port, the Sudeste Port, and the non-iron ore activities
of and the industrial complex at the Acu Port, are business opportunities that
are currently being carried out by LLX Acu Operacoes Portuarias S.A. ("LLX
Eike Batista, Chairman & CEO of MMX and Chairman of LLX, said: "The
closing of this transaction is a very important step for LLX. The funds raised
on this transaction with OTPP will allow LLX to develop three ports
opportunities that will not only provide MMX with additional logistics
alternatives, but will also capitalize on their premium location. I believe
that the Brazil Port and the Acu Port have all geographical and conceptual
qualities to become new logistics gateways for Brazil."
The LLX port opportunities will be developed as mixed-use terminals sized
to berth large carriers with contiguous industrial complex areas and have,
therefore, major expansion capacity. The Acu Port, with a back-area of 7,200
ha, will handle iron ore from the MMX Minas-Rio pipelines, as well as other
products such as steel, coal, containers, granite, ethanol, oil derivatives
and LNG. The Brasil Port, with a back-area of 1,900 ha, is being designed to
handle iron ore, containers, fertilizers, agricultural and liquid bulk. The
Sudeste Port is also strategically located and sized to house a distribution
center and berth for an iron ore terminal.
LLX Acu is a subsidiary of MMX, which owns 70% of its outstanding shares.
The remaining 30% interest is owned by Centennial Asset Logistica S.A. LLX
also owns 51% of LLX Minas-Rio Logistica S.A., which is developing the iron
ore terminal at the Acu Port.
Additional information may be obtained through the e-mail email@example.com.
Rio de Janeiro, September 28, 2007
Luiz Rodolfo Landim Machado
Executive President and Investor Relations Officer
MMX Mineracao e Metalicos S.A.
For further information:
For further information: MMX - Investor Relations Elizabeth Cruz, 55 21
2555-5634 or Gina Pinto, 55 21 2555-5558 firstname.lastname@example.org www.mmx.com.br/ri