Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


No Support for Non-Binding Indicative Offer to Acquire STU

Steel & Tube’s Board advises no support for non-binding indicative offer from Fletcher Building to acquire Steel & Tube

On 10 September 2018, Steel & Tube Holdings Limited (NZX: STU) received a non-binding, indicative and confidential offer (NBIO) from Fletcher Building Limited to acquire the company.

Steel & Tube’s Board has carefully considered the NBIO and sought expert legal and commercial advice. The Board does not support the indicative offer, for a number of reasons including:

• The NBIO of $1.70 per share significantly undervalues Steel & Tube’s Board’s view of the company’s value.
• The proposed acquisition would need clearance under the Commerce Act, which would take some time to work through due to Fletcher’s vertical presence and significant size in several steel product markets.

Chair of Steel & Tube, Susan Paterson, said: “The fact that Fletchers has made this indicative offer speaks to our reputation and the strength of our business. Obviously Fletchers sees a lot of value in our business and its future potential as the benefits of our turn-around strategy start to become clear… as do we.”

Steel & Tube recently reaffirmed its FY19 guidance of earnings before interest and tax of $25 million on the back of the continuing positive progress being made under the company’s ‘Striving for Excellence’ strategy. The company has a clear focus on growth and improving financial performance as it positions itself as New Zealand’s leading supplier of steel products. While the market remains highly competitive, Steel & Tube continues to win new customers, sign large contracts, increase efficiencies and reduce costs.

Steel & Tube’s solid foundation has recently been strengthened with a successful capital raising. The Board and Management are confident in the improving performance of the company, and remain focused on providing high quality steel solutions and products and delivering value for employees, customers and shareholders.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>


Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>


Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>


Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>