Steel manufacturer announces OSC relief in issuer bid
by CM Staff
At this time, Algoma has not yet determined if it will extend the Offer, and the expiration of the Offer remains the Expiration Date, which for greater certainty is July 27, 2022.
SAULT STE. MARIE — Algoma Steel Group Inc. announced that the Ontario Securities Commission has granted an exemptive relief order exempting Algoma from complying with the requirement that Algoma first takes up all of its common shares deposited under its currently underway substantial issuer bid before extending the expiration date of the Offer, if Algoma ultimately determines to extend the Offer in the circumstance where the Offer is undersubscribed.
The Offer by Algoma is being made by way of a “modified Dutch Auction”, allowing shareholders who choose to participate in the Offer to individually select the price, within a price range of not less than US$8.75 and not more than US$10.25 per Share (in increments of US$0.10 per Share), at which they will tender their Shares to the Offer. Upon expiry of the Offer, Algoma will determine the lowest purchase price (which will not be more than US$10.25 per Share and not less than US$8.75 per Share) that will allow it to purchase the maximum number of Shares properly tendered to the Offer, and not properly withdrawn, having an aggregate purchase price not exceeding US$400 million.
The Offer is not conditional upon any minimum number of Shares being tendered.
The Offer is currently open for acceptance until 5:00 PM (Eastern time) on July 27, 2022, unless withdrawn, extended or varied by Algoma.
At this time, Algoma has not yet determined if it will extend the Offer, and the expiration of the Offer remains the Expiration Date, which for greater certainty is July 27, 2022. Algoma will determine whether it will extend the expiration of the Offer beyond the Expiration Date once it determines how many Shares have been tendered (and not withdrawn) under the Offer, and considers all relevant circumstances. In the event the Offer is extended, Algoma will provide a further news release disclosing the details of such extension.