By Paras Ramoutar
IANS
Toronto : Shareholders in Algoma Steel have voted overwhelmingly to sell to the India-based Essar Steel at its annual general meeting here Monday.
Some 82 per cent of the Sault Ste. Marie, Ontario based steel giant's stock voted in favour of the $56-a-share(Can) or $1.85 billion (Can) from Essar. Algoma Chief executive Officer Dennis Turcotte said that the company had planned a spending programme of more than $500 million(Can) over the next seven years, but Essar wants to accelerate work to complete it within three to five years.
Turcotte said that,"if anything, I think this takeover is going to be very good for Algoma and Sault Ste. Marie."
He revealed that the work overhaul will increase steel-making capacity by about two-thirds to four million tons annually, inclusive of new value-added products.
According to a statement, the deal with Essar Steel, an international conglomerate, surfaced in mid-april after Salzgitter AG, Germany walked away from a potential takeover in March.
Essar has interests in the steel,oil and gas, power generation, shipping, communications and construction sectors and anticipates revenues amounting to US $10 billion annually.
Reports are that the Federal Competition Bureau and Investment Canada have approved the deal and it will be closed by month's end. With the sale, the name Algoma will be changed.
Essar Steel expects to commence construction of US $1.8 billion steel complex in Trinidad and Tobago shortly.