Steel & Tube’s Board advises that it has received a revised non-binding indicative offer from
Fletcher Building to acquire Steel & Tube and is arranging to appoint an independent expert.
As advised to the market on 3 October 2018, Steel & Tube Holdings Limited (NZX: STU) had received
a non-binding, indicative and confidential offer (NBIO) from Fletcher Building Limited to acquire the
company at $1.70 per share.
The Board did not support the indicative offer, for a number of reasons including:
• The NBIO of $1.70 per share significantly undervalues Steel & Tube’s Board’s view of the
company’s value.
• The proposed acquisition would face challenging issues for clearance under the Commerce
Act that would take some time to work through, due to Fletcher Building’s vertical presence
and significant size in several steel product markets.
REVISED NON-BINDING INDICATIVE OFFER
Steel & Tube has received a revised NBIO from Fletchers of $1.90 per share, with provision for a
permitted dividend of up to 5 cents per share (imputed to the extent possible) (copy attached).
The company’s advisers’ (First NZ Capital) view on Steel & Tube’s intrinsic value is between $1.95
and $2.36 per share, excluding the company’s share of synergies.
The board remains of the view and has informed Fletcher Building that the company’s value exceeds
the revised price of $1.90 per share.
However Steel & Tube advises that in light of the revised offer the Board is commissioning an
independent expert report which will take 3-4 weeks, and will further consult its legal and financial
advisers about the implications of the revised offer. Fletcher Building has been advised of this (copy
attached).
Chair of Steel & Tube, Susan Paterson, said: “The revised NBIO from Fletchers does not prevent
higher value approaches from other interested parties. The Board will continue to evaluate
strategies and actions that deliver the best value to shareholders and is continuing to focus on
executing our turn-around strategy.”
Revised Non-Binding Indicative Offer to Acquire STU Received
ENDS
For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: [email protected]