Algoma shareholders gives nod for sale to Essar

MUMBAI: Canadian steel maker Algoma Steel Inc announced on Monday that it has received shareholders' approval for its acquisition by Essar Steel Holdings Ltd for 1.85 bn Canadian dollars (over Rs 7,097.94 crore).

"At the Annual and Special meeting held on Monday, shareholders approved an arrangement involving the acquisition by Essar Steel Holdings Ltd of all of Algoma's outstanding common shares for all-cash consideration of 56 dollars per share," Algoma said in a statement.

The deal, which was approved by 82.6 per cent of the shareholders, is expected to be completed by June 18, the company added.

Last week, Essar Global Ltd - parent company of Essar Steel Holdings - said it had received approval from the Canadian government for acquisition of Algoma Steel for 1.85 bn Canadian dollars (over Rs 7,097.94 crore).

The regulators had approved the deal after Essar agreed to keep the Canadian steel company's head office in Sault Ste Marie, Ontario and ensured a boost in annual capital expenditures.

"Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both the organisations," Algoma CEO Denis Turcotte had said.