Nucor Corporation announced that it has agreed to make a tender offer for all of the shares of Harris Steel Group, Inc. at CAD $46.25 (approx. U.S. $39.58) per share. This tender offer will remain open for a minimum of 35 calendar days and has the full support of the boards of directors of both Nucor and Harris Steel. In conjunction with this offer, Harris Steel has entered into a support agreement with Nucor. Harris Steel's board is unanimously recommending that its shareholders tender their shares to this offer. In addition, John Harris, chairman and CEO of Harris Steel, and other members of the Harris family along with Paul Kelly, the president and chief operating officer of the company, have entered into a Lock-Up Agreement to irrevocably tender their shares to this offer. This Lock-Up Agreement will deliver 13,715,440 shares, representing in excess of 50 percent of the shares of Harris Steel to Nucor.
Nucor will pay CAD $46.25 in cash for each share of Harris Steel. The offer places an approximate value of CAD $1.25 billion (approx. U.S. $1.07 billion) on the equity of Harris Steel. As of Sept. 30, 2006, Harris Steel had net debt of approximately CAD $123 million (approx. U.S. $106 million).
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