Esmark (ESMK) Agrees to be Acquired by OAO SeverStal for $19.25/Share, Up from Previous $17 Bid

June 25, 2008 4:33 PM EDT

Esmark Incorporated (NASDAQ: ESMK) today announced that it has entered into a definitive merger agreement to be acquired by OAO SeverStal for $19.25 per share. This represents an overall transaction including debt valued at approximately $1.25 billion.

Under the terms of the merger agreement, SeverStal will amend its tender offer to increase its offer price from $17 to $19.25 per share. A revised offer to purchase will be distributed to Esmark shareholders, and the scheduled expiration date for the amended tender offer is 12:00 midnight, New York City time, on July 18, 2008, unless extended. The offer and related transactions contemplated by the merger agreement are subject to the satisfaction of customary closing conditions.

In addition to the merger agreement, SeverStal has entered into an agreement to purchase Esmark's aggregate $110 million term loan facilities from Essar Steel Holdings Limited.

Esmark Incorporated, through its subsidiaries, engages in the manufacture, processing, and sale of steel products.

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