Lakeside Shareholders Approve Arrangement
03/27/2012 - Lakeside Steel announced that Lakeside stockholders approved the previously announced plan of arrangement for the acquisition of the company’s common shares by 2312522 Ontario Inc., a wholly owned subsidiary of JMC Steel Group, Inc.
Lakeside Steel Inc. announced that Lakeside stockholders approved the previously announced plan of arrangement for the acquisition of the company’s common shares by 2312522 Ontario Inc., a wholly owned subsidiary of JMC Steel Group, Inc.
The Plan of Arrangement was approved during a special Lakeside shareholders meeting by 98.78% of the 110,080,112 votes cast at the meeting, and by 98.45% of the 85,918,932 votes cast by the disinterested "minority" shareholders, voting separately as a class.
Under the Plan of Arrangement, 2312522 Ontario Inc. will acquire all Lakeside’s issued and outstanding common shares at a price of $0.2983 per share in cash. Holders of company options will receive a cash payment equal to the "in-the-money" value of their options (if applicable) and holders of certain company warrants will receive a cash payment of $0.0383 per warrant.
Implementation of the proposed arrangement remains subject to approval by the Ontario Superior Court of Justice (Commercial List) at a hearing that is scheduled to be held on March 29, 2012, as well as certain other customary closing conditions.
Lakeside, the parent company of Lakeside Steel Corp., Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc., 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.
JMC Steel Group, Inc. is the largest independent steel tubular manufacturer in North America, producing more than 2 million tons of pipe and tubular products a year and employing more than 1,800 people. It operates 12 manufacturing facilities in the U.S. and Canada and is a market leader in steel hollow structural sections (HSS), standard pipe and electrical conduit. Its companies have been recognized for their short production cycle times, in-house coating capabilities and proprietary products. The JMC Steel Group, Inc. is headquartered in Chicago, Ill.; its two largest companies, Atlas Tube and Wheatland Tube, market products under their brand names.
