Australia's second-largest steelmaker OneSteel Limited has announced that its wholly owned subsidiary OneSteel NZ Holdings Limited (OneSteel) has given notice to New Zealand-based Steel & Tube Holdings Limited (Steel & Tube) of its intention to make a cash offer for all of the shares in Steel & Tube that it does not already own. OneSteel is the largest shareholder in Steel & Tube and owns 50.27 percent in the company.
Under the takeover offer, OneSteel is offering NZ$4 a share for the remainder 49 percent of Steel and Tube, valuing it at NZ$352 million (US$242 million)
Commenting on the offer, OneSteel Limited Managing Director and CEO Geoff Plummer said, "If OneSteel's offer proceeds, it will allow OneSteel to simplify its corporate structure and efficiently manage the Steel & Tube business as part of the OneSteel group."