About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
 
Support our sponsors:
sharemarket

Steel and Tube Holdings Limited

Thursday 11th October 2012

Text too small?

 Local steel products maker Steel & Tube is looking at a return to the NZX 50 index after ASX-listed owner Arrium sold its majority stake for $91.2 million today.

The greater liquidity would help Steel & Tube return to the benchmark index at its next review, which would generate more interest in the company.

The Australian company, formerly known as OneSteel, appointed an investment bank to underwrite and manage the sale of its Steel & Tube stake at $2.05 a share, a 15 percent discount to the Steel & Tube's closing price yesterday.

The stock dropped 8.7 percent today to $2.21. Steel & Tube's chief executive Dave Taylor said the company will have to review its strategy with a new capital structure, which could include raising capital if there was any industry consolidation.He declined to comment on whether Steel & Tube was looking at any acquisitions.

On a positive note it sees signs the rebuild in Christchurch is underway, albeit slowly and it is being led by the residential sector, infrastructure and preparatory activities of companies in readiness for the rebuild.

Similarly, residential activity in Auckland is picking up, while oil and gas activities continue in the Taranaki region.

STU reports that its is in very good shape with strong cash flows and a strong balance sheet and is well positioned for the future.

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

Steel and Tube FY profit helped by lower input prices; Christchurch commercial work awaited
Steel and Tube FY profit rises 19 percent as costs fall more than sales
Steel and Tube first-half profit rises 14 percent , sees stronger second half
Steel and Tube returns to NZX 50
Steel and Tube eyes NZX50 after Arrium sells out for $91.2 mln
Steel and Tube shares fall 6.6 percent after parent Arrium sells half-stake
Steel and Tube annual profit drops 23% as competition squeezes margins
Steel & Tube's first-half profit falls 24%
Steel & Tube sees difficult trading conditions continuing
Steel & Tube taps Janie Elrick as new CFO, company secretary

Get quotes for (STU)
 
Previous News
Bond
Bond
News Alerts
Breaking News 
After the Bell (daily) 
Gold News 

Unsubscribe/Update »

RSS feeds »
Twitter »
Facebook »

Most Commented On
  forex centre
cfd centre
options centre
NZX 15 Index
   





© Copyright 2014 MoneyOnline Ltd & Investment Research Group Ltd. All Rights Reserved.