Cleary Gottlieb is representing SK Networks Co., Ltd., a member of the SK Group of Korea, in its $700 million minority equity investment in MMX Mineração e Metálicos, a Brazilian public corporation engaged in the iron ore mining business and a member of the EBX Group of Brazil. The transaction, which also involves a long-term iron ore offtake agreement between SK Networks and MMX as well as a related spin-off transaction by an MMX affiliate involving its port and logistics businesses and subsequent exchange tender offer for such spun-off entity by MMX following the closing of SK Networks’ investment, was announced on September 30. The transaction constitutes the largest-ever outbound investment in the iron ore mining sector by a Korean company. In addition, the SK Group and the EBX Group concurrently entered into a cooperation agreement for the joint development of future business opportunities and ventures over a variety of industries. The closing is expected to occur in the fourth quarter of 2010.
SK Networks is a member of the SK Group, one of Korea’s leading conglomerates which includes several long-term clients of Cleary Gottlieb. SK Networks’ business scope spans a wide array of industries, including trading, natural resources, petroleum, telecommunications, auto-services and fashion.