Bedrock to reduce Stelco stake in $208 mln secondary deal

Canadian steelmaker Stelco Inc (TSX: STLC) said a syndicate of underwriters has agreed to buy up to 9.2 million of the company’s common shares from selling shareholders. The secondary offering is expected to generate more than $208 million in proceeds, including the greenshoe option. As part of the deal, U.S. private equity firm Bedrock Industries Group, Stelco's majority investor, will distribute a portion of its interest to affiliates of Lindsay Goldberg, a Bedrock partner. Following the offering's close, Bedrock's stake in the company will be reduced to about 63.1 percent. Hamilton, Ontario-based Stelco went public last year, raising $230 million.

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