Acceptance period expires Aug. 12; delisting set to proceed
Kloeckner & Co SE said Wednesday that its management and supervisory boards have determined that the delisting tender offer from majority owner Worthington Steel is in shareholders’ best interests, but the company declined to issue a formal recommendation for or against acceptance.
The European steel and metal processor said it views Worthington Steel’s intentions as broadly positive, according to a statement from the company. The boards, after independent review, concluded the delisting aligns with the company’s strategic direction, but they said they were unable to recommend either acceptance or rejection.
U.S.-based Worthington Steel completed its acquisition of a majority stake in Kloeckner early last month, a deal valued at $2.4 billion including debt. The company subsequently launched a public delisting tender offer for all outstanding Kloeckner shares at the same price: 11 euros per share.
The delisting is expected to take effect once the acceptance period expires on Aug. 12, regardless of the level of acceptance, Kloeckner said. The move will give Kloeckner greater strategic flexibility going forward, the company said, but it will significantly restrict minority shareholders’ ability to trade shares once the delisting is completed.