HAMILTON, ON, Nov. 3 /CNW/ - Stelco Inc. (TSX:STE) announced today that
it completed the previously-announced sale of the assets of Stelpipe Ltd. on
October 31, 2005.
On August 19, 2005, the Company announced that it had entered into a
definitive agreement for the sale of substantially all of the assets of
Stelpipe to Romspen Investment Corporation ("Romspen"). That agreement was
subsequently assigned to Lakeside Steel Corporation ("Lakeside"), a
wholly-owned subsidiary of Romspen. On September 6, 2005, the transaction was
approved by the Court.
The transaction reflects Stelco's previously-announced decision, as
outlined in the four-point strategy announced in July 2004, to focus on its
core integrated steel business.
As a result of the transaction, Lakeside has assumed all of Stelpipe's
obligations to its active employees retained by Lakeside and Stelco will
assume all of the pension and benefit obligations respecting Stelpipe's
retirees. In addition, Lakeside entered into a steel supply agreement with
Stelco.
At a hearing conducted on October 31, 2005, the Court ordered that
certain commercially sensitive information contained in the sale agreement
continue to be sealed for a further period and that the steel supply agreement
be sealed permanently or until further order of the Court. Accordingly,
further details of the transaction may not be disclosed at this time.
Stelco Inc. is a large, diversified steel producer. Stelco is involved in
major segments of the steel industry through its integrated steel business,
mini-mills, and manufactured products businesses.
This news release may contain forward-looking information with respect to
the Corporation's business operations, financial performance and conditions.
Actual results may differ from expected results for a variety of reasons
including factors discussed in the Corporation's Management's Discussion and
Analysis section of the Corporation's 2004 Annual Report. To learn more about
Stelco and its businesses, please refer to our Web site at www.stelco.ca.
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