Russel Metals Announces Automatic Share Purchase Plan
Russel Metals Inc. (TSX: RUS) today announced that it has entered into an automatic share purchase plan with a broker in order to facilitate repurchases of its common shares under its previously announced normal course issuer bid. On February 20, 2008, Russel Metals announced that it had received approval from The Toronto Stock Exchange (the “Exchange”) to make a normal course issuer bid, pursuant to which Russel Metals may purchase for cancellation up to 6,000,000 of its common shares, representing approximately 10% of its public float.
As at September 19, 2008, Russel Metals has purchased 767,500 common shares under the normal course issuer bid. The number of common shares currently outstanding is 62,502,890.
Under Russel Metals’ automatic share purchase plan, Russel Metals’ broker may repurchase shares under the normal course issuer bid at times when Russel Metals would ordinarily not be permitted to, due to self-imposed blackout periods. Russel Metals anticipates renewing the plan from time to time during the course of its normal course issuer bid to enable purchases of its common shares to be made during internal blackout periods; however, such renewal or amendment may not be made by Russel Metals during a blackout period. Purchases will be made by Russel Metals’ broker based upon the parameters prescribed by the Exchange, applicable Canadian securities laws and the terms of the parties’ written agreement. The automatic share purchase plan has been approved by the Exchange and will be implemented effective as of September 30, 2008.
Russel Metals believes that the market price of its common shares at times may not fully reflect the underlying value of its business and its future business prospects. As a result, depending on future price movement and other factors, Russel Metals believes that its outstanding common shares may represent an attractive investment opportunity.
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec Industries, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
Contacts: Russel Metals Inc. Marion E. Britton, C.A. Vice President and Chief Financial Officer (905) 819-7407 Email: email@example.com Website: www.russelmetals.com
SOURCE: Russel Metals Inc.