Keystone to Withdraw Registration Statement for Subscription Rights Offering
08/18/2011 - Keystone Consolidated Industries has decided not to proceed with its proposed subscription rights offering following the purchase of 1.55 million shares of Keystone common stock in a private transaction by majority shareholder Contran.
Keystone Consolidated Industries, Inc. has decided not to proceed with its previously announced proposed subscription rights offering to Keystone common stockholders. The company said it intends to request withdrawal of the related registration statement on Form S-1, filed with the Securities and Exchange Commission, in connection with the proposed offering.
The registration statement had not yet been declared effective by the SEC, nor had Keystone actually commenced the proposed offering.
The proposed offering contemplated participation by Contran Corp., Keystone's majority stockholder, as a subscribing party to the fullest extent possible. Both Keystone's commencement of the proposed offering and Contran's participation in it was subject to Keystone and Contran reaching agreement on terms of the proposed offering.
Prior to reaching agreement on terms of the offering, Contran reported the purchase of an additional 1.55 million shares of Keystone's common stock from a third-party stockholder in a private transaction, increasing its ownership interest in Keystone to approximately 88%. As a result of this purchase, Contran has indicated to Keystone that it no longer intends to subscribe for Keystone shares in connection with the proposed offering.
As disclosed in the registration statement, Keystone had reserved the right to terminate or cancel the subscription rights offering at any time and for any reason.
Headquartered in Dallas, Texas, Keystone Consolidated Industries is a leading manufacturer of steel fabricated wire products, industrial wire and wire rod. Keystone also manufactures wire mesh, coiled rebar, steel bar and other products. The Company's products are used in the agricultural, industrial, cold drawn, construction, transportation, original equipment manufacturer and retail consumer markets.
