Russel Metals Announces Intention to Make a Normal Course Issuer Bid
18 Februar 2008 - 8:28PM
Marketwired
TORONTO, ONTARIO announced that its Board of Directors approved
a normal course issuer bid, pursuant to which Russel Metals may
purchase for cancellation up to six million of its common shares,
representing approximately 10% of its public float over the next 12
months. The number of common shares that are currently outstanding
is 63,066,092.
Russel Metals believes that the market price of its common
shares at times may not fully reflect the underlying value of its
business and its future business prospects. As a result, Russel
Metals believes that its outstanding common shares represent an
attractive investment and an appropriate and desirable use of its
available funds.
The common shares have recently traded at prices which Russel
Metals' believes do not truly reflect their value. The purchase of
six million shares will not jeopardize the ability of Russel Metals
to pay its dividend. Debt to total capitalization would be 19%.
Russel Metals would still have the ability to finance acquisitions
of approximately a size comparable to its recent acquisition of JMS
Metal Services.
Subject to approval from The Toronto Stock Exchange, purchases
may commence on February 22, 2008 and will terminate on February
21, 2009 or such earlier date as Russel Metals may complete its
purchases pursuant to the Notice of Intention. All common shares
purchased by the Company under the bid will be cancelled.
Russel Metals is one of the largest metals distribution
companies in North America. It carries on business in three
distribution segments: metals service centers, energy tubular
products and steel distributors, under various names including
Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier
Richler, Arrow Steel Processors, B&T Steel, Baldwin
International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel
Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel,
Metaux Russel Produits Specialises, Milspec Industries, Pioneer
Pipe, Russel Metals Specialty Products, Russel Metals Williams
Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular
& Supply, Wirth Steel and York-Ennis.
Statements contained in this press release or on the related
conference call that relate to Russel Metals' beliefs or
expectations as to certain future events are not statements of
historical fact and are forward-looking statements. Russel Metals
cautions readers that there are important factors, risks and
uncertainties, including but not limited to economic, competitive
and governmental factors affecting Russel Metals' operations,
markets, products, services and prices that could cause its actual
results, performance or achievements to be materially different
from those forecasted or anticipated in such forward looking
statements.
The forward-looking statements in this document reflect
management's current beliefs and are based on information currently
available to management. The material assumptions applied in making
the forward-looking statements in this document include the
following: there will be steady demand in the manufacturing,
resource and construction segments of the Canadian economy, oil and
gas prices will not change materially, there will be continued
consolidation of steel producers, the recent stability in the price
of steel will continue, and the Canadian dollar will maintain
recent gains while not appreciating significantly. Although the
forward-looking statements contained in this document are based
upon what management believes to be reasonable estimates and
assumptions, Russel Metals cannot ensure that actual results will
not be materially different from those expressed or implied by
these forward-looking statements.
Contacts: Russel Metals Inc. Marion E. Britton Vice President
and Chief Financial Officer (905) 819-7407 Email:
info@russelmetals.com Website: www.russelmetals.com
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