Dec 2 2005
Stelco Inc. today announced that it has entered into a definitive agreement for the sale of the assets of AltaSteel Ltd. to Scaw Metals Group ("Scaw"), one of Africa's largest diversified iron, steel and engineering works, subject to Court approval.
The transaction is subject to a number of conditions, including obtaining the required regulatory and lenders' consent. It is anticipated that, if all conditions are satisfied as planned, the sale will close early in 2006.
The pursuit of the sale of AltaSteel, as in the case of Stelco's other non-core subsidiaries, reflects Stelco's previously announced decision to focus on its integrated steel business going forward. That approach was outlined in the four-point strategy announced in July 2004.
Scaw has indicated its intention to continue operating AltaSteel in its current lines of business and in its current location near Edmonton, Alberta. Scaw has also indicated that it looks forward to building upon the strong business platform that AltaSteel has established, while making focused capital investments to provide for increasing demand in the growing Alberta economy.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "This marks an important step in our pursuit of a transaction that will be good for AltaSteel, for its employees and retirees, and for Stelco. A successfully completed transaction will provide AltaSteel with ownership that views it as a strategic asset. It will provide employees and retirees with greater certainty. And it will assist Stelco in focusing on its integrated steel business."