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HAMILTON, ON, May 8, 2019 /CNW/ - Stelco Holdings Inc. ("Stelco Holdings" or the "Company") (TSX: STLC) today announced that its wholly-owned subsidiary, Stelco Inc. ("Stelco"), has completed the acquisition of the remaining ~37 acres of land, which includes buildings of approximately 500,000 SF of industrial space and 100,000 SF of office space (the "Remaining Lands") located adjacent to Stelco's Hamilton Works operations, which is currently comprised of approximately 760 acres of property purchased by Stelco in June 2018. The Remaining Lands were purchased from Legacy Lands Limited Partnership for an aggregate purchase price of $20 million and completes the return to Stelco of control over all of the Hamilton Works lands (the "Lands") previously held by it prior to the commencement of the CCAA proceedings.
The acquisition of the Remaining Lands provides a necessary contiguous footprint for our Hamilton property that will provide Stelco with the flexibility to develop the Lands in a manner that both complements its current and future operations and pursue other uses for the Lands. Stelco has recently started to generate returns from its existing surplus land, and the acquisition of the Remaining Lands will afford greater opportunity to capitalize on growing demand for industrial lands in the Greater Toronto Hamilton Area ("GTHA"). This acquisition further supports Stelco's mandate for growth through the utilization of our tactical flexibility model while we remain focused on manufacturing the high quality steels required by our growing customer base.
Stelco continues to receive the benefit of the environmental release in respect of the Lands that was granted by the Ministry of the Environment, Conservation and Parks on closing of the CCAA reorganization.
"Since our initial acquisition of lands in both Hamilton and Nanticoke almost one year ago, we have worked diligently to unlock their value and generate significant value for our shareholders," stated Alan Kestenbaum, Executive Chairman of Stelco Holdings "We have put in place a team to specifically pursue these opportunities and capitalize on the very strong demand that exists for industrial lands in the GTHA. We will continue to engage with the City of Hamilton and other parties to deliver future strategic development of these lands. Acquiring these Lands enhances the value of the entire property and facilitates development and value creation opportunities for Stelco."
Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first-rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributers of steel products.
This release contains ''forward-looking information'' within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, plans and objectives of our Company. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as ''plans'', ''expects'' or ''does not expect'', ''is expected'', ''opportunity", ''budget'', ''estimates'', ''outlook'', ''projection'', ''prospects'', ''strategy'', ''anticipates'', ''does not anticipate'', ''believes'', or variations of such words and phrases or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'', ''will'', or ''achieve''. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances may be forward looking statements. Forward-looking statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. The forward-looking statements contained herein are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes.
Forward-looking information in this news release includes potential development of the Lands and tactical flexibility resulting from the acquisition of the Lands and the Rights relating thereto. Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of our ability to complete the transactions, as well as those set out in this press release, are material factors made in preparing the forward-looking information and management's expectations contained in this press release.
Such forward-looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results or achievements to be materially different from those expressed or implied by such forward-looking information, including: Stelco's ability to develop the Lands in a manner that compliments current and future operations, Stelco's ability to pursue other uses for the Lands, Stelco's ability to capitalize on any demand for industrial lands in the GTHA, the possibility that demand for industrial lands in the GTHA does not increase or materially deteriorates from current levels, arriving at mutually acceptable terms in respect of any future transactions between Stelco and its various stakeholders, as well as those described in the Company's annual information form and the Company's management discussion and analysis for the period ended December 31, 2018 available under the Company's profile on SEDAR at www.sedar.com.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release, and are subject to change after such date. Stelco Holdings disclaims any intention or obligation or undertaking to update publicly or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise, except as required by law.
For further information: For investor enquiries: Don Newman, Chief Financial Officer, 905.577.4432, [email protected]; For media enquiries: Trevor Harris, Vice-President, Corporate Affairs, 905.577.4447, [email protected]