Quanex sets closing, record dates for spinoff

By Lisa Kerner

Charlotte, N.C., March 31 - The board of directors of Quanex Corp. set April 23 as the record date and the distribution date for the spinoff of its building products business.

According to Quanex, the spinoff will be immediately followed by the merger of Quanex with a subsidiary of Gerdau SA for $39.20 per common share.

Quanex stockholders are set to vote on the merger at a special meeting on April 22, according to a company news release.

It was previously reported that the Harris County State District Court denied a request by Momentum Partners for a temporary injunction of the pending merger. Momentum asked the court to enjoin the proposed spinoff by Quanex of its building products division and the subsequent merger of Quanex into the Gerdau subsidiary.

Quanex planned to merge its vehicular products business, including its Macsteel division, with a wholly owned subsidiary of Gerdau for $1.67 billion while the building products business would be spun off to shareholders as a standalone company called Quanex Building Products in a taxable distribution via a stock-for-stock exchange, a prior release stated.

Houston-based Quanex manufactures components for the vehicle and building products industries.

Gerdau is a Porto Alegre, Brazil-based steel manufacturer.

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