Gerdau Ameristeel Shareholders Approve Gerdau’s Acquisition of Remaining Shares
08/25/2010 - Gerdau Ameristeel's shareholders approve Gerdau SA’s acquisition of all remaining common shares of Gerdau Ameristeel for US$11.00 in cash per common share. Once completed, the deal will make Gerdau Ameristeel a wholly owned subsidiary of Gerdau.
Gerdau Ameristeel's shareholders have approved an arrangement under the Canada Business Corporations Act for Gerdau SA to acquire all remaining common shares of Gerdau Ameristeel not already owned by it for US$11.00 in cash per common share. Once completed, the deal will make Gerdau Ameristeel a wholly owned subsidiary of Gerdau.
The special resolution was approved during a special shareholders meeting held on Tuesday. Approximately 93% of the common shareholder votes and approximately 74% of the votes by minority holders of common shares (shareholders other than Gerdau SA and its related parties) were cast in favor of the deal.
The company expects that the arrangement will be completed in August 2010, following receipt of court approval and the satisfaction of other customary conditions.
Gerdau S.A. is the largest producer of long steel in the Americas and one of the world's largest suppliers of special long steel. It has plants in 14 countries spanning the Americas, Europe and Asia, with total installed capacity of more than 25 million tonnes of steel. It is the largest recycler in Latin America, transforming millions of tonnes of scrap into steel every year.
Gerdau Ameristeel is the second-largest mini-mill steel producer in North America, with annual manufacturing capacity of approximately 10 million tonnes of mill-finished steel products. Through its vertically integrated network of minimills, scrap recycling facilities and downstream operations, Gerdau Ameristeel serves customers throughout the United States and Canada. Gerdau Ameristeel's majority shareholder is Gerdau S.A.
