The deal is done, Gerdau Ameristeel is going private.
Shareholders of Gerdau Ameristeel Corp., which has operated a mill in Knoxville for many years, on Tuesday approved a deal taking the company private.
Brazilian steelmaker Gerdau’s plan to buy all of the shares it did not already own for $11 each was approved by 93 percent of the votes cast in a special shareholders meeting, Gerdau Ameristeel announced.
The deal is expected to be completed by the end of August.
Original announcement of Gerdau’s stock purchase plan.
Photo: Knoxville News Sentinel/ Michael Patrick
A section of molten steel is cut to length during the manfacturing of rebar at Gerdau Ameristeel in Knoxville.
Gerdau Ameristeel Corp. (GNA on NYSE) and Brazilian steelmaker Gerdau SA have reached agreement on the previously announced deal that would have Gerdau taking the Tampa based steelmaker private.
Gerdau and Gerdau Ameristeel, which has a mill in Knoxville, have “entered into a definitive arrangement agreement to implement” Gerdau’s plan to pay $11 per share to buy all of the Gerdau Ameristeel stock that it doesn’t already own, according to an announcement.
Gotta love that language — “entered into a definitive arrangement agreement to implement”. They couldn’t just say they have a deal? But I digress.
Nothing like a buy out offer to fatten up your share price.
Three weeks ago Gerdau Ameristeel, which has been producing steel in Knoxville for a long time, announced that Brazilian steelmaker Gerdau wanted to buy all of the shares of Gerdau Ameristeel that it didn’t already own. Since then GNA shares have zoomed — rising nearly 40 percent, making it one of the market’s best performing steel companies of the last few months.
On one day alone the company’s stock price soared more than 54 percent.