Steel & Tube Announces Distribution of Offer Document

16 August 2018
STU / NZX ANNOUNCEMENT


Level 7, IBM Building, 25 Victoria Street, Petone 5012, PO Box 30543, Lower Hutt 5040
P 04 570 5000 F 04 570 2453 www.steelandtube.co.nz
STEEL & TUBE ANNOUNCES DISTRIBUTION OF OFFER DOCUMENT
Steel & Tube Holdings Limited (NZX:STU) has today sent a copy of the Offer Document and
Entitlement and Acceptance Form to eligible shareholders.
The $60.1 million capital raise by way of a fully underwritten, pro rata 1 for 1.9 rights issue at $1.05
per New Share, and shortfall bookbuild, was announced to the market on 7 August 2018.
The issue price represents a 28.1% discount to the closing share price on the NZX on 6 August 2018
and a 18.3% discount to the theoretical ex-rights price (TERP) of $1.28 per share, post the Placement
and the Rights Offer, based on the pre-announcement close of $1.46. The latest share price for Steel
& Tube is available at
www.nzx.com under the ticker “STU”.
Proceeds from the capital raising will be used to repay debt, thereby strengthening Steel & Tube’s
balance sheet and providing greater flexibility for the company to execute its strategy and deliver
better value for shareholders.
The company’s goal is to be the leader in buying, selling, processing and placing steel products in
New Zealand. Early benefits are being seen from Project Strive business transformation initiatives
underway and the improving sales trend seen in the last three months of FY18 has continued into
the current financial year. The company has provided EBIT guidance for FY19 of at least $25.0 million
and expects to achieve a normalised EBIT of $35 million to $40 million in the next three years.
Details of the Rights Offer are contained in the Offer Document which is available on Steel & Tube’s
website
https://steelandtube.co.nz/sites/default/files/publications/2018rightsoffer.pdf Eligible
shareholders have until 5.00pm on 3 September 2018 to take up their rights and make payment.
Key Dates
•
Record date for rights issue
•
Despatch of Offer Document to shareholders
•
Opening date of rights offer
•
Closing date of rights offer
•
Shortfall bookbuild
•
Allotment of New Shares
•
Payment of any premium achieved in bookbuild
5.00pm on 15 August 2018
16 August 2018
17 August 2018
5.00pm on 3 September 2018
5 September 2018
7 September 2018
By 11 September 2018
ENDS
For further information please contact:
Greg Smith
Steel & Tube CFO
Tel: +64 21 755 803
Email: greg.smith@steelandtube.co.nz
Jackie Ellis
Media and communications
Tel: +64 27 246 2505
Email: jackie@ellisandco.co.nz