Steel & Tube Announces Sale and Leaseback of Property

STEEL & TUBE ANNOUNCES SALE AND LEASE BACK OF BLENHEIM ROAD PROPERTY Steel & Tube Holdings Limited (NZX: STU) has signed an unconditional agreement to sell its property at 375 Blenheim Road, Christchurch for $21.1 million on a sale and lease back basis. The transaction is expected to be completed on 29 June 2018. Steel & Tube Chief Executive Officer, Mark Malpass, said: "This arrangement allows us to retain our successful operations in the newly upgraded Blenheim Road distribution hub under favourable lease terms, while freeing up capital to pay down debt." Steel & Tube's established operations, long term plans and recent investment into the property made it an attractive acquisition with interest from multiple parties. Steel & Tube expects the sale will result in the Company recognising a gain on sale of approximately $1.3 million in the financial year ending 30 June 2018. Steel & Tube advises that the earnings guidance provided to the market on 23 May 2018 did not include any gain on sale. -ENDS- Greg Smith Chief Financial Officer & Company Secretary STEEL & TUBE For further information please contact: Greg Smith Steel & Tube CFO Tel: +64 21 755 803 Email: greg.smith@steelandtube.co.nz Jackie Ellis Media and communications Tel: +64 27 246 2505 Email: jackie@ellisandco.co.nz End CA:00319802 For:STU Type:MKTUPDTE Time:2018-06-22 08:31:51