NEW YORK, Dec. 05, 2018 (GLOBE NEWSWIRE) -- 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.
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Chief Financial Officer
Source: Icahn Enterprises L.P.
Source: Icahn Enterprises L.P.