Algoma Steel shareholders agree to Essar takeover

Algoma Steel Inc. announced that, at its annual and special meeting of shareholders held in Sault Ste. Marie, Ontario, shareholders approved an arrangement involving the acquisition by a subsidiary of Essar Steel Holdings Limited of all of Algoma’s outstanding common shares for all cash consideration of $56 per share. The arrangement was approved by 82.6 percent of the votes cast at the meeting.

Algoma, Essar and their advisors expect that the balance of the preconditions to the closing of the arrangement are likely to be satisfied over the next several days, including final court approval of the arrangement. Depending on various factors, the closing of the arrangement is anticipated to occur in the week of June 18.

Algoma Steel is an integrated steel producer based in Sault Ste. Marie. Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.