WELLAND, ON, March 30, 2012 /CNW/ - JMC Steel Group, Inc. ("JMC") and Lakeside Steel Inc. (TSX-V: LS) ("Lakeside") announced today that they have completed Lakeside's statutory plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement"). Pursuant to the Arrangement, JMC Steel Group, Inc., through a wholly-owned subsidiary, acquired all of the issued and outstanding common shares of Lakeside at a price of CAD $0.2983 per share in cash.
The arrangement was conducted pursuant to an arrangement agreement dated January 25, 2012 among JMC, Lakeside and 2312522 Ontario Inc. In connection with the arrangement, JMC entered into voting agreements with Jaguar Financial Corporation, one of Lakeside's principal shareholders, as well as all of the directors and executive officers of Lakeside. Pursuant to these voting agreements, the supporting shareholders agreed to vote their shares in favour of the Arrangement.
Following completion of the arrangement, JMC now owns and controls all of the outstanding common shares of Lakeside.
The Ontario Superior Court of Justice issued a final order approving the Arrangement on March 29, 2012. Further information about the Arrangement was provided in a management information circular dated February 27, 2012, which was sent to Lakeside's shareholders.
About Lakeside Steel Inc.
Lakeside is 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.
About JMC Steel Group, Inc.
JMC Steel Group, Inc. is the largest independent steel tubular manufacturer in North America, producing more than 2 million tons of pipe and tubular products a year and employing more than 1,800 people. It operates 12 manufacturing facilities in the U.S. and Canada and is a market leader in steel hollow structural sections (HSS), standard pipe and electrical conduit. Its companies have been recognized for their short production cycle times, in-house coating capabilities and proprietary products. The JMC Steel Group, Inc. is headquartered in Chicago, IL; its two largest companies, Atlas Tube and Wheatland Tube, market products under their brand names.
For further information:
Chief Executive Officer
JMC Steel Group, Inc.
227 W. Monroe Street, 26th Floor
Chicago, IL 60606
email: [email protected]