The Competition Commission has conditionally approved the sale of Nedbank- and Capital Africa Steel- (CAS-) owned shares in struggling Alert Steel to Cannistraro Investments, the AltX-listed steel retailer said on Friday.
The transaction, in which Cannistraro agreed to buy a 47.5% stake in Alert Steel from CAS for a total consideration of R13.5-million, equating to 54.58c a share, was approved this week with employment and training conditions.
Cannistraro, which was also acquiring 10.2-million shares, or 19.78%, from Nedbank for an aggregate purchase price of R1-million, was required to limit retrenchments over the next two years to no more than 100 skilled and 50 semiskilled employees.
Alert Steel was also required to add another six Alert Steel Express container outlets, bringing its total portfolio to 35 sites, while increasing the number of containers from one to three on each site.
The steel retailer was also tasked with training – within two years of implementation – 60 to 100 graduates under the Wholesale and Retail Skills Education Training Authority.