Sep 21 2006
Specialty steel company Boulder Steel today announced the appointment of leading United Arab Emirates investment bank The National Investor (TNI) to act as its exclusive financial advisor.
Boulder Steel Managing Director Dr Peter H. Wallner said TNI’s appointment is the next step in the funding of the company’s Australian Seamless Tube Project including establishing a Middle East-based subsidiary in the form of a finishing facility to undertake the Seamless Tube Project, as well as the expansion of its 50%-owned Euro Forming Services business.
Dr Wallner said TNI will act for the specialty steel mill as financial advisor, lead manager, lead arranger and bookrunner in relation to the following investment banking services:
- 1. The raising of $US600 million of debt and equity, pending finalisation of a bankable feasibility study, to fund the Seamless Tube Project.
- 2. As part of the $US600 million, $US150 million will be raised through a secondary listing of Boulder on the Dubai International Financial Exchange (DIFX). This amount may be reduced to the extent that Middle Eastern investors directly participate as minority shareholders in the equity of the subsidiary; and
- 3. The raising of $US15 million for the expansion of Boulder’s Euro Forming Services through an equity private placement. Potential investors have already been identified and due diligence will proceed shortly.
Dr Wallner said it is anticipated that the capital raising will be completed in approximately five months.
“This time frame includes and is subject to calling a general meeting of Boulder’s shareholders to approve the transaction, completion of the bankable feasibility study, a review by the Australian Foreign Investment Review Board and the necessary regulatory approvals of the Dubai Financial Services Authority for a listing on the DIFX.”
Acknowledging the assistance and support of the Dubai-based director and investor, Mr Abdul Rahman Falaknaz and its financing arrangers in the finalisation of contractual arrangements with TNI, Dr Wallner said the transaction was managed by Prime Assets Finance Ltd and Management & Finance Consulting Ltd pursuant to the Finance Management Agreement announced by the steel company on 14 July 2006.
“The appointment of TNI is a significant step forward in funding the Seamless Tube Project and the expansion of Euro Forming Services. TNI is a highly-reputable, multi-award winning investment company, which has been ranked as the leading equity house in the United Arab Emirates Euromoney in 2005 and 2006,” Dr Wallner said.