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News from Reuters

Royal Laser gets unsolicited takeover bid

17/11/09

TORONTO (Reuters) - Royal Laser Corp , which makes and distributes flat-rolled steel to auto manufacturers, said on Tuesday that it has received an unsolicited C$30 million ($28.3 million) takeover bid.

The offer of 31 Canadian cents a share is for the company's core assets, which make up the steel processing business of its Venture Steel subsidiary.

Royal Laser did not name the bidder in a release and representatives were not immediately available for comment.

The Toronto-based company said the nonbinding offer is subject to various conditions, including the sale of its non-core assets.

The company also said it had received an offer from its co-chief executive, Bill Iannaci, to buy the non-core assets for around C$8 million.

Royal Laser also sells to the automotive after-market and custom fabricates products for the industrial, environmental, and construction industries in Canada, the United States and Mexico.

Last year, Canadian merchant bank Jaguar Financial Corp made an all cash offer to buy up to about 31.6 million of Royal Laser's common shares at 80 Canadian cents each. However, Jaguar said that several conditions of its bid were not satisfied and the offer expired in December.

Jaguar would not confirm or deny that it is behind the current bid for Royal Laser. The merchant bank is currently the company's biggest stakeholder, with about 18.4 percent of its shares.

Royal Laser said it has formed a special committee to consider the offers with a view to maximizing value for its shareholders.

It said on Friday, when it reported its second-quarter fiscal results, that it has about 97 million shares outstanding.

Shares of Royal Laser were up 6 Canadian cents, or 24.4 percent, at 28 Canadian cents on the Toronto Stock Exchange on Tuesday afternoon.

($1=$1.055 Canadian)

(Reporting by John McCrank; editing by Rob Wilson)

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