December 02, 2008

Alert Steel to acquire Steel Giant

It is reported that South African steel retailer Alert Steel has agreed on August 20th 2007 to buy smaller peer Steel Giant with shares and cash to the maximum value of ZAR 12 million.

As per report, Alert Steel would pay ZAR 3 million in cash on the closing date of the deal, ZAR 3 million worth of shares at ZAR 1.75 each and another ZAR 3 million within six months of closing the transaction. It said in a note to the JSE that Alert would pay the balance in shares based on the profitability of its business in the financial years ending June 2008 and June 2009.

Steel Giant has four retail operations situated on the West Rand of Gauteng and the North West Province. The deal is subject to conditions including the cession and delegation of the premises leases to Alert, and written consent to the cession of material contracts. South Africa’s competition authorities would also have to approve the deal before it was finalized.