Revised Non-Binding Indicative Offer to Acquire STU Received

15 Oct 2018

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.




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



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.”


PDF icon Revised Non-Binding Indicative Offer to Acquire STU Received 




For further information please contact:


Mark Malpass

Steel & Tube CEO

Tel: +64 27 777 0327

Email: [email protected]