CCL participates in 98 Holdings bid for NatSteel takeover
NatSteel Ltd. announced the details of its decision to sell its entire stake of 66.8% in NatSteel Brasil Ltda to Gerdau Participacoes Ltda and Gerdau GTL
Spain S.L., that initiated in January 2002. The company has concluded the sale by confirming receipt of $ 253'633'687 gross proceeds from Gerdau.
This situation secures the conditions of the bids received both from Crown Central Assets (CCL) and 98 Holdings. NatSteel president Ang Kong Hua together with the management company CCL agreed the other day to participate in 98 Holdings' equity and funding structure under a binding agreement dated October 31, 2002.
This agreement restrains the management team from participating in any other offer given for the shares, assets and undertakings of NatSteel. Furthermore, the management team will acquire a stake of upto 5% in the 98 Holding upon the 98 Holdings' offer becoming unconditional and no retrenchments will be made for a period of 12 months. NatSteel president Ang Kong Hua will continue as a director and president of NatSteel. He has also been invited to become a director of 98 Holdings together with another director from Board of NatSteel.
98 Holdings will not revise its current S$2.00 offer but will reserve the right to revise the terms and conditions in case of a receipt of competing offer other than CCL's.
Both parties stated their cooperation would lead them to achieve their objectives for the future of NatSteel.