WELLAND, ON, Jan. 10, 2012 /CNW/ - Lakeside Steel Inc. (TSX-V: LS)
("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
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.
SOURCE Lakeside Steel Inc.
For further information:
Blair Franklin Capital Partners
Lakeside Steel Inc.