WELLAND, ON, March 26, 2012 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside" or the "Company") announced that at the special meeting of Lakeside shareholders held today (the "Meeting"), its shareholders approved the previously announced plan of arrangement (the "Plan of Arrangement") pursuant to which, among other things, 2312522 Ontario Inc., a wholly owned subsidiary of JMC Steel Group, Inc., will acquire all of the issued and outstanding common shares of the Company at a price of $0.2983 per share in cash, holders of Company options will receive a cash payment equal to the "in-the-money" value of their options (if applicable) and holders of certain Company warrants will receive a cash payment of $0.0383 per warrant. The Plan of Arrangement was approved by 98.78% of the 110,080,112 votes cast at the Meeting and by 98.45% of the 85,918,932 votes cast by the disinterested "minority" shareholders, voting separately as a class.
Implementation of the proposed arrangement remains subject to approval by the Ontario Superior Court of Justice (Commercial List) at a hearing which has been scheduled to be held on March 29, 2012, as well as certain other customary closing conditions.
Complete details of the proposed arrangement is set forth in Lakeside's Management Proxy Circular dated February 27, 2012.
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.
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:
For further information about this press release, please contact Norman Findlay, interim Chairman of the Board of Directors of the Company, at 416-777-6077.