Sims Reports Queries from Hugo Neu on Stake in Company

Sims Group Ltd. has acknowledged that Hugo Neu Corp. representatives have contacted advisors to advise the company on possible strategies for its position in Sims.

Hugo Neu, which has a 26 percent stake in Sims Group, is considering as one option the sale of some or all of its stock in the company. Hugo Neu is the largest shareholder in Sims, which is the largest metal recycling company in the world. Sims Group acquired Hugo Neu about two years ago for around $450 million.

According to an announcement made by Sims, Hugo Neu is restricted from selling any of its shares in the company until the end of April 2007. According to published reports, Hugo Neu’s stake in the company is around $553 million. The company may consider waiving the lock up period if requested, although in its announcement Sims says that Hugo Neu has not requested that strategy.