Business
Stelco announces agreement to sell AltaSteel
Stelco announces agreement to sell AltaSteel.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Dec. 1 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nit has entered into a definitive agreement for the sale of the assets of\nAltaSteel Ltd. to Scaw Metals Group (\"Scaw\"), one of Africa's largest\ndiversified iron, steel and engineering works, subject to Court approval.\nThe transaction is subject to a number of conditions, including obtaining\nthe required regulatory and lenders' consent. It is anticipated that, if all\nconditions are satisfied as planned, the sale will close early in 2006.\nThe pursuit of the sale of AltaSteel, as in the case of Stelco's other\nnon-core subsidiaries, reflects Stelco's previously announced decision to\nfocus on its integrated steel business going forward. That approach was\noutlined in the four-point strategy announced in July 2004.\nScaw has indicated its intention to continue operating AltaSteel in its\ncurrent lines of business and in its current location near Edmonton, Alberta.\nScaw has also indicated that it looks forward to building upon the strong\nbusiness platform that AltaSteel has established, while making focused capital\ninvestments to provide for increasing demand in the growing Alberta economy.\nCourtney Pratt, Stelco President and Chief Executive Officer, said, \"This\nmarks an important step in our pursuit of a transaction that will be good for\nAltaSteel, for its employees and retirees, and for Stelco. A successfully\ncompleted transaction will provide AltaSteel with ownership that views it as a\nstrategic asset. It will provide employees and retirees with greater\ncertainty. And it will assist Stelco in focusing on its integrated steel\nbusiness.\"\n\nAbout Stelco\nStelco Inc. is a large, diversified steel producer. Stelco is involved in\nmajor segments of the steel industry through its integrated steel business,\nmini-mills, and manufactured products businesses. This news release may\ncontain forward-looking information with respect to the Corporation's business\noperations, financial performance and conditions. Actual results may differ\nfrom expected results for a variety of reasons including factors discussed in\nthe Corporation's Management's Discussion and Analysis section of the\nCorporation's 2004 Annual Report. To learn more about Stelco and its\nbusinesses, please refer to our Web site at www.stelco.ca.\n%SEDAR: 00001549E\n\n\n","le...