Kloeckner says boards view Worthington’s delisting bid favorably

Kloeckner said its management and supervisory boards believe the delisting offer from majority owner Worthington Steel is in shareholders’ best interests, but stopped short of recommending its acceptance.

The European steel and metal processor on Wednesday said it views Worthington Steel’s intentions as broadly positive, but that it is unable to recommend either acceptance or rejection of the offer to shareholders.

U.S.-based Worthington completed its acquisition of majority ownership in Kloeckner early last month in a deal that valued the company at $2.4 billion including debt, and subsequently launched a delisting tender offer at the same price, 11 euros a share.

The delisting is expected to come into effect once the acceptance period expires on Aug. 12, regardless of the level of acceptance, Kloeckner said. The move will give Kloeckner greater strategic flexibility going forward, but minority shareholders’ ability to trade shares will be significantly restricted once completed, it added.

Write to Nina Kienle at [email protected]