Legato Merger has scheduled an Oct. 14 meeting for stockholders to vote on the proposed merger with Algoma Steel Group, a producer of hot and cold rolled steel products including sheet and plate.
A proxy and prospectus were filed with the SEC in July, although the commission’s records do not show the filings have been declared effective.
Terms call for Algoma to receive the approximately $236 million held in Legato’s trust, as well as a $100 million PIPE. The PIPE includes investments from strategic steel industry participants, as well as investments from Legato’s Chairman, TD Wealth Management, Vantage Asset Management, JC Clark, Hite and Goodwood Fund.
A subsidiary of Algoma will be merged with and into Legato, with Legato surviving the merger as a wholly-owned subsidiary of Algoma. The merger agreement provides that Algoma’s existing shareholders and management team will own 75 million Algoma common shares on a fully-diluted basis, with an implied value of $750 million at $10 per share.
Shares would trade on the Nasdaq. Canada-based Algoma also intends to apply to list shares on the Toronto Stock Exchange. Read more.
