Algoma owners agree to takeover
September 30th, 2007 by 
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Shareholders of Algoma Steel voted strongly in favour of a takeover deal that will see the company acquired by Essar Steel Holdings Ltd. of India.
Algoma said Monday that 82.6 per cent of the votes cast at its annual meeting of shareholders in Toronto were in favour of the takeover.
Canadian steel company takeovers
Company Buyer Price
Algoma Steel Essar Global (India) $1.85B
IPSCO SSAB (Sweden) $8.5B
Dofasco Arcelor/Mittal (Luxembourg) $4.9B
Harris Steel Nucor (USA) $1.25B
Co-Steel Gerdau (Brazil) $600M
Essar offered $56 per share in cash for Algoma back in mid-April, making the deal worth $1.85 billion.
Algoma CEO Denis Turcotte told reporters that Essar will spend $500 million in upgrades within the next three to five years.
The Essar bid is expected to clear its final hurdles and be completed next week.
Algoma went through restructuring under court-ordered creditor protection in the 1990s. The company put itself up for sale in 2005 but could not land a buyer.
The acquisition of Algoma leaves Stelco Inc. as the final Canadian steel company.Stelco has been selling off some assets, and lastweek its CEO said he wanted to sell the company toanother steelmaker.
With files from Canadian Press
Posted in Investment | 