By Paul McBeth
Monday 29th September 2008
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OneSteel offered NZ$4.00 cash per share, or NZ$175 million, for the rest of Steel and Tube, a 33% premium to the company’s last trading price, it said in a statement. The offer values Steel & Tube at NZ$353 million.
If the offer succeeds, OneSteel will “simplify its corporate structure and efficiently manage the Steel & Tube business as part of the OneSteel group,” said Geoff Plummer, managing director.
OneSteel plans to delist Steel & Tube, marking the ending the target’s 41-year tenure as a company on the New Zealand stock exchange. OneSteel will retain the brand of Steel & Tube, a company which last month posted a 19% drop in full year profit in the face of a slowing economy.
Shares of Steel & Tube were bid at NZ$3.86, having traded at NZ$3 on Friday. The stock has declined 20% this year, about matching the slide in the NZX 50 Index.
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