Lakeside Provides Update on Non-Binding Transaction Proposal
January 07 2012 - 12:08AM
PR Newswire (Canada)
WELLAND, ON, Jan. 10, 2012 /CNW/ - Lakeside Steel Inc. ("Lakeside"
or the "Company") today announced that the previously announced
period in which the Company has agreed to negotiate exclusively
with the potential purchaser regarding an acquisition or similar
transaction has been extended for 10 days in order to allow the
potential strategic purchaser to complete its due diligence and
finalize definitive transaction agreements with the Company.
Since the previous announcement by the Company, the potential
purchaser's proposed price at which it would offer to acquire all
of the Company's common shares has been amended to $0.30 per share
from the previously disclosed $0.40 per share. The proposed
acquisition remains subject to certain conditions including the
completion of due diligence by no later than January 19, 2012, the
execution of a definitive transaction agreement between the Company
and the Purchaser as well as the execution of support agreements
with directors of the Company and certain significant
shareholders. There is no assurance
that definitive transaction agreements will be executed by the
parties or that the proposed acquisition will be consummated.
Lakeside's Board of Directors has appointed a special committee of
independent directors to review the proposed offer referred to in
the Company's press release of December 20, 2011 and make
recommendations to the Board. The Special Committee members are
Norm Findlay (Chair), Tony Meti and Bob Milbourne. The Special
Committee has retained the services of Blair Franklin Capital
Partners Inc. to provide independent financial advice and
has engaged the law firm of Osler, Hoskin & Harcourt LLP
as independent legal advisor to the Special Committee. About
Lakeside Steel Inc. Lakeside is a 2011 TSX Venture Exchange 50
company and the parent company of Lakeside Steel Corporation,
Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside
has operating facilities located in Welland, Ontario, Thomasville,
Alabama, and Corpus Christi, Texas, and two processing facilities
currently being constructed in Thomasville, Alabama. Lakeside is a
diversified steel pipe and tubing manufacturer with a focus on
manufacturing and upgrading Oil Country Tubular Goods. Lakeside's
list of customers includes large oil and gas end users as well as
distributors across North America. 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, Alabama. Construction of the Alabama
facilities is currently underway. This press release may contain
forward-looking statements with respect to the Company, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking
words such as "may", "will", "expect", "estimate", "anticipate",
intends", "believe" or "continue" or the negative thereof or
similar variations. The actual results and performance of the
Company discussed herein could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in the Management's Discussion, and
Analysis, Annual Information Form and Filing Statement of the
Company which are available at www.sedar.com. The cautionary
statements qualify all forward-looking statements attributable to
the Company and persons acting on their behalf. Unless otherwise
stated, all forward-looking statements speak only as of the date of
this press release and the Company has no obligation to update such
statements. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Lakeside was recognized as a TSX Venture
50® company in 2010 and 2011. TSX Venture 50 is a trade-mark of TSX
Inc. and is used under license. Lakeside Steel Inc. CONTACT: Blair
Franklin Capital PartnersJoel Kazmane-mail:
jkazman@blairfranklin.comKyler WellsCorporate SecretaryLakeside
Steel Inc.416-644-8177
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