March 3 (Bloomberg) -- Ternium SA, Latin America’s second- biggest steelmaker, said it received delayed compensation payments from the Venezuelan government for the nationalization of the Sidor steel mill. The shares rose more than 4.5 percent.

Ternium received a payment of $158.2 million as a first installment and a second payment of $142 million as part of a mandatory prepayment for the next installment, the Luxembourg- based company said today in an e-mailed statement.

Ternium said on Feb. 24 that Venezuela was late in making payments as part of the $1.97 billion compensation agreed upon to nationalize the South American country’s biggest steel plant. Ternium has now received $1.25 billion of the total payment.

Venezuelan President Hugo Chavez, who has nationalized parts of the oil, metals, cement and utilities industries during his 11 years in power, is facing arbitration proceedings for seized assets from companies including the U.S.’s Exxon Mobil Corp.,ConocoPhillips and Mexico’s Cemex SAB.

Ternium added 4.6 percent, or $1.64, to $36.98 as of 10:06 a.m. in New York Stock Exchange composite trading. It traded at $36.77 at 10:19 a.m.

Ternium and Venezuela negotiated for a year over the price of Sidor. They reached an agreement in May 2009.

Brazil’s Gerdau SA is the biggest producer of steel in Latin America.

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net.