With no debt and duty refunds expected, WEF can copy Stelco.Stelco Holdings Inc. intends to commence a substantial issuer bid pursuant to which the company will offer to purchase up to 30 million of its outstanding common shares from holders of shares for cash at a price of $35 per share for an aggregate maximum purchase amount of $1.05-billion. The terms of the offer are identical to those of the company's previous substantial issuer bid, which commenced on July 27, 2022, and expired on Sept. 12, 2022. The company has determined to commence the offer, in part, because North American peer companies have made public announcements since the expiration of the July, 2022, SIB regarding expectations of poor results for the rest of fiscal 2022, which have collectively driven down share prices in the sector. Accordingly, the board of directors considered it appropriate to give shareholders an opportunity to participate in the offer on terms identical to the July, 2022, SIB.
The purchase price represents a premium of approximately 9.2 per cent over the closing price on the TSX on Sept. 21, 2022. As of Sept. 21, 2022, there were 63,355,691 shares issued and outstanding. The number of shares subject to the offer represents approximately 47.4 per cent of the total number of shares issued and outstanding as of Sept. 21, 2022. All shareholders of the company may tender shares pursuant to the offer, subject to the terms set forth in the offer documents.