By Phil Boeyen, ShareChat Business News Editor
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Monday 18th March 2002 |
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STU says the deal is for the purchase of Pipeline Supplies New Zealand Limited, which is a nationwide distributor of pipe and fittings with operations in Auckland, New Plymouth, Wellington and Christchurch.
Pipeline Supplies, which has 33 employees, has forecast sales for the half-year ending June this year of $15 million with earnings before tax and interest of $1.8 million.
Steel & Tube says because OneSteel is a related party and the net acquisition price exceeds 5% of the company's shareholders' funds, it must seek approval from non-associated shareholders and obtain an independent appraisal report.
"The divestment of Pipeline Supplies New Zealand Limited by OneSteel Limited has created a unique opportunity for the company to acquire a profitable and well-run business that is in line with our core business activities," STU says.
"This will also strengthen our existing operations that operate in a similar market segment."
A special meeting to consider the proposal is scheduled for the middle of May.
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