Algoma Steel gets shareholders' nod for sale

Canadian steel maker Algoma Steel today announced it has received shareholders' approval for its acquisition by Essar Steel Holdings for Canadian $1.85 billion (over Rs 7,097.94 crore).

"At the annual and special meeting held today, shareholders approved an arrangement involving the acquisition by Essar Steel Holdings of all of Algoma's outstanding common shares for an all-cash consideration of $56 per share," Algoma said in a statement.

The deal, which was approved by 82.6% of the shareholders, is expected to be completed by June 18.

Last week, Essar Global - the parent company of Essar Steel Holdings - said it had received approval from the Canadian government for acquisition of Algoma Steel.

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.