Lakeside Provides Update on Non-Binding Transaction Proposal
01/11/2012 - Lakeside Steel Inc. announced a 10-daye extension of the period in which the company has agreed to negotiate exclusively with the potential purchaser regarding an acquisition or similar transaction.
Lakeside Steel Inc. announced a 10-daye extension of the period in which the company has agreed to negotiate exclusively with the potential purchaser regarding an acquisition or similar transaction. The extension was granted to allow the potential strategic purchaser to complete due diligence and finalize definitive transaction agreements with the company.
Since Lakeside’s previous announcement the potential purchaser has amended the proposed price at which it would offer to acquire the company's common shares to $0.30 per share from the previously disclosed $0.40 per share.
The proposed acquisition remains subject to certain conditions including completion of due diligence by no later than January 19, 2012, execution of a definitive transaction agreement between Lakeside and the Purchaser, and execution of support agreements with directors of the company and certain significant shareholders.
Lakeside's Board of Directors has appointed a special committee of independent directors to review the proposed offer and make recommendations to the Board. The Special Committee, whose members include Norm Findlay (Chair), Tony Meti and Bob Milbourne, has retained the services of Blair Franklin Capital Partners Inc. to provide independent financial advice and has engaged the law firm of Osler, Hoskin & Harcourt LLP as independent legal advisor to the Special Committee.
Lakeside is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corp., Lakeside Steel Alabama Inc., and Lakeside Steel Texas Inc. Lakeside has operating facilities located in Welland, Ont., Thomasville, Ala., and Corpus Christi, Texas, as well as two processing facilities currently being constructed in Thomasville, Ala. Lakeside is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods.
Lakeside Steel Alabama will be a diversified steel pipe manufacturer with end-finishing and heat treat capabilities strategically situated in the southern United States on successful completion of construction of the new facilities in Thomasville, Ala.
