European group set to buy Rontan Friday 9/30/16
http://www.oprogressodetatui.com.br/noticia.p...;idsecao=1
O Progresso de Tatuí
By Conn Publicidade
Portal do Jornal - O Progresso de Tatuí
Rontan negotiates sale to European fund
Investor group should confirm the purchase of local company on Friday
09/24/16 - The report
If purchase is confirmed, European investment fund will be the majority shareholder of Rontan
Rontan Electro Metallurgical expected to announce in the coming days, the transfer of the company's control to a fund for European investment. The foreign group will have a majority stake in the company. The Bolzan family, owners of Rontan, will continue to have company shares, however, on a minority basis. According to the Chief Financial Officer, Clovis Paulino, the effectiveness of the company's sale is scheduled to take place on Friday, 30, when the new shareholders must transfer the capital contribution to the company. "Once we receive the signal, which is scheduled for the 30th, we will announce the sale of the company. For now, we can not speak with whom we are negotiating. We will only do that when implemented," explained Paulino. The executive declined to identify the name and nationality of the investment group that is negotiating the acquisition of the company. The shareholding of Bolzan family and the capital fund are still being discussed by the parties. Currently, the company is controlled by João Alberto Bolzan, with 51.82% stake, and José Carlos Bolzan, with 48.18%, according to JUCESP (Trade Board of the State of São Paulo) data. Being a "limited partnership", the transfer of control must take place with the agreement of all partners. Paulino said he did not know if the injection of funds in the company will be made through a capital increase or by direct purchase of shares. In the first case, the new injected shareholders "new money" in Rontan, "dissolves" the participation of the current shareholders. In the case of purchase, the shares of shareholders are acquired directly. According to the executive, the negotiation is advanced. The final contract of sale, however, will only be signed after the capital investment. The purchase price was not informed. "The details of the acquisition are being treated by the legal areas of Rontan and investment fund. We do not have this information, and even if we had, we could not say because the buyer asked secrecy," he said. After the sale, the company should continue to be called Rontan. There is no information whether the company can become an "S/A" (corporation). Firms such should provide annually financial information and follow corporate governance rules of the CVM (Brazilian Securities Commission), which would give greater control and transparency to the financial statements. The company's debts to employees and suppliers will be under the responsibility of the new drivers, the executive said. The acquisition will allow Rontan pay the back wages of employees and former employees, and settle accounts with suppliers and outsourced companies that provide services to the company. "We are committed to paying employees on the 30th, once we receive the signal. The situation with suppliers will gradually be settled from there," he said. The company's operations will return to normal after the capital contribution, according to the director. The date of re-opening the factory was not informed, but may occur in the weeks following the acquisition. The impending sale of the company and the payment of debts to employees were announced at the general meeting on Wednesday morning, 21. The meeting was convened by SINDMETAL (metalworkers union of Tatuí and Region). according to the union, the 836 steel workers of the company are without pay for four months. The employees are on strike since June 6. Also, according to the union, food baskets are not delivered for seven months. The company is in default also in vacation pay. The PLR (Profit Participation and Results), which was to have been paid in July, had not yet been deposited, according to the director of SINDMETAL Cicero Ramos Pereira. He added that the deposits of FGTS (Guarantee Fund for Time service) are not collected for 12 months. at the time, the union announced it is organizing new representation for indirect termination of employees. The institute is provided in the CLT (Consolidation of Labor Laws) and is applied in cases where the employer does not fulfill obligations as payment of wages, overtime, and FGTS, among others. "There are people in need in this situation. The union is helping by paying water bills, electricity, medicine purchasing and delivering food baskets to some of these people," he said. "We have much to do. We gave credit to the company and we are waiting for the court to decide," he said. On the other hand, the financial director of the company said that if the discharge of debts to employees materializes on the 30th, the arrest of action to the detriment of Rontan no longer has purpose. "When we pay the debts, the lawsuit filed by the union no longer makes sense. Anyway, it is a commitment of new drivers pay off all debts of the company and put it to work as soon as possible," he reiterated. Crisis worsened A leading provider of vehicles for federal and state government, Rontan was one of the companies greatly affected by successive budget cuts that the government has been promoting since 2014. The crisis in the company worsened late last year when the company started to delay payments to suppliers and staff salaries. Since then, the number of contracted in Rontan has fallen. Of 1250 employees in 2012, the company estimates it to be about 900 in the local unit. Founded in 1970 in São Paulo, the company moved to Tatui in 1978. By 2012, Rontan was responsible for 85% of the domestic market sound and light-signaling devices for vehicles and represents 70% of sales in South America and Mexico in this segment. The company was exporting products to the United States, Canada, Asia, and Europe. The company's line of business includes the customization of vehicles for police forces, manufacturing heavy vehicles for the Fire Department and the Army, visual signaling and sound for vehicles, installation and distribution of communication and communication systems radios for security forces. The Rontan Group came to have six branches: Rontan Telecon (communicators radios manufacturer), Rovcan ("joint venture" with a Chinese industry manufacturing helmets), Rontan Betim, Global Services, Rontan North America (installed in Miami, in the United States) and FBA (Brazilian Foundry Aluminum). Some of the companies were closed or sold, as the FBA, acquired by Latasa Recycling in September last year, R$ 227 million. At the end of 2015, the business owners were negotiating a sale of Rontan with US firm GDSI (Global Digital Solution Inc.). The foreign company even announced the purchase of Rontan to the US Securities and Exchange Commission (SEC, its acronym in English). Despite the US announcement, the deal did not materialize. At the time, GDSI said it would trigger the American commission to enforce the contract.
http://www.oprogressodetatui.com.br/noticia.p...;idsecao=1
O Progresso de Tatuí
By Conn Publicidade
Portal do Jornal - O Progresso de Tatuí
Rontan negotiates sale to European fund
Investor group should confirm the purchase of local company on Friday
09/24/16 - The report
If purchase is confirmed, European investment fund will be the majority shareholder of Rontan
Rontan Electro Metallurgical expected to announce in the coming days, the transfer of the company's control to a fund for European investment. The foreign group will have a majority stake in the company. The Bolzan family, owners of Rontan, will continue to have company shares, however, on a minority basis. According to the Chief Financial Officer, Clovis Paulino, the effectiveness of the company's sale is scheduled to take place on Friday, 30, when the new shareholders must transfer the capital contribution to the company. "Once we receive the signal, which is scheduled for the 30th, we will announce the sale of the company. For now, we can not speak with whom we are negotiating. We will only do that when implemented," explained Paulino. The executive declined to identify the name and nationality of the investment group that is negotiating the acquisition of the company. The shareholding of Bolzan family and the capital fund are still being discussed by the parties. Currently, the company is controlled by João Alberto Bolzan, with 51.82% stake, and José Carlos Bolzan, with 48.18%, according to JUCESP (Trade Board of the State of São Paulo) data. Being a "limited partnership", the transfer of control must take place with the agreement of all partners. Paulino said he did not know if the injection of funds in the company will be made through a capital increase or by direct purchase of shares. In the first case, the new injected shareholders "new money" in Rontan, "dissolves" the participation of the current shareholders. In the case of purchase, the shares of shareholders are acquired directly. According to the executive, the negotiation is advanced. The final contract of sale, however, will only be signed after the capital investment. The purchase price was not informed. "The details of the acquisition are being treated by the legal areas of Rontan and investment fund. We do not have this information, and even if we had, we could not say because the buyer asked secrecy," he said. After the sale, the company should continue to be called Rontan. There is no information whether the company can become an "S/A" (corporation). Firms such should provide annually financial information and follow corporate governance rules of the CVM (Brazilian Securities Commission), which would give greater control and transparency to the financial statements. The company's debts to employees and suppliers will be under the responsibility of the new drivers, the executive said. The acquisition will allow Rontan pay the back wages of employees and former employees, and settle accounts with suppliers and outsourced companies that provide services to the company. "We are committed to paying employees on the 30th, once we receive the signal. The situation with suppliers will gradually be settled from there," he said. The company's operations will return to normal after the capital contribution, according to the director. The date of re-opening the factory was not informed, but may occur in the weeks following the acquisition. The impending sale of the company and the payment of debts to employees were announced at the general meeting on Wednesday morning, 21. The meeting was convened by SINDMETAL (metalworkers union of Tatuí and Region). according to the union, the 836 steel workers of the company are without pay for four months. The employees are on strike since June 6. Also, according to the union, food baskets are not delivered for seven months. The company is in default also in vacation pay. The PLR (Profit Participation and Results), which was to have been paid in July, had not yet been deposited, according to the director of SINDMETAL Cicero Ramos Pereira. He added that the deposits of FGTS (Guarantee Fund for Time service) are not collected for 12 months. at the time, the union announced it is organizing new representation for indirect termination of employees. The institute is provided in the CLT (Consolidation of Labor Laws) and is applied in cases where the employer does not fulfill obligations as payment of wages, overtime, and FGTS, among others. "There are people in need in this situation. The union is helping by paying water bills, electricity, medicine purchasing and delivering food baskets to some of these people," he said. "We have much to do. We gave credit to the company and we are waiting for the court to decide," he said. On the other hand, the financial director of the company said that if the discharge of debts to employees materializes on the 30th, the arrest of action to the detriment of Rontan no longer has purpose. "When we pay the debts, the lawsuit filed by the union no longer makes sense. Anyway, it is a commitment of new drivers pay off all debts of the company and put it to work as soon as possible," he reiterated. Crisis worsened A leading provider of vehicles for federal and state government, Rontan was one of the companies greatly affected by successive budget cuts that the government has been promoting since 2014. The crisis in the company worsened late last year when the company started to delay payments to suppliers and staff salaries. Since then, the number of contracted in Rontan has fallen. Of 1250 employees in 2012, the company estimates it to be about 900 in the local unit. Founded in 1970 in São Paulo, the company moved to Tatui in 1978. By 2012, Rontan was responsible for 85% of the domestic market sound and light-signaling devices for vehicles and represents 70% of sales in South America and Mexico in this segment. The company was exporting products to the United States, Canada, Asia, and Europe. The company's line of business includes the customization of vehicles for police forces, manufacturing heavy vehicles for the Fire Department and the Army, visual signaling and sound for vehicles, installation and distribution of communication and communication systems radios for security forces. The Rontan Group came to have six branches: Rontan Telecon (communicators radios manufacturer), Rovcan ("joint venture" with a Chinese industry manufacturing helmets), Rontan Betim, Global Services, Rontan North America (installed in Miami, in the United States) and FBA (Brazilian Foundry Aluminum). Some of the companies were closed or sold, as the FBA, acquired by Latasa Recycling in September last year, R$ 227 million. At the end of 2015, the business owners were negotiating a sale of Rontan with US firm GDSI (Global Digital Solution Inc.). The foreign company even announced the purchase of Rontan to the US Securities and Exchange Commission (SEC, its acronym in English). Despite the US announcement, the deal did not materialize. At the time, GDSI said it would trigger the American commission to enforce the contract.
1
