Brief: Algoma Steel And Legato Merger Corp. Sign Definitive Merger Agreement

Algoma Steel

25/05/2021 02:30

May 24 (Reuters) - 
    * ALGOMA STEEL AND LEGATO MERGER CORP. SIGN DEFINITIVE
MERGER
AGREEMENT
    * ALGOMA STEEL -  AT $10 PER SHARE OF LEGATO COMMON STOCK,
THIS
ALL-STOCK TRANSACTION VALUES COMBINED COMPANY AT AN ENTERPRISE
VALUE OF ABOUT $1.7 BILLION
    * ALGOMA STEEL -TRANSACTION TO RESULT IN ALGOMA STEEL
BECOMING A
PUBLICLY LISTED COMPANY
    * ALGOMA STEEL -ALSO INTENDS TO APPLY TO LIST ITS COMMON
SHARES ON
TORONTO STOCK EXCHANGE
    * ALGOMA STEEL - DEAL EXPECTED TO PROVIDE CO WITH $306
MILLION OF
CAPITAL, INCLUDING A $100 MILLION FULLY COMMITTED PRIVATE
PLACEMENT WITH KEY INVESTORS
    * ALGOMA STEEL - LEGATO'S BOARD OF DIRECTORS HAS APPROVED
MERGER
AGREEMENT
    * ALGOMA STEEL - ALGOMA HAS RECEIVED BOTH SHAREHOLDER
APPROVAL AND
BOARD OF DIRECTOR APPROVAL FOR MERGER AGREEMENT
    * ALGOMA STEEL - TRANSACTION IS EXPECTED TO CLOSE IN Q3 OF
2021
    * ALGOMA STEEL -DEAL IMPLIES PRO FORMA ENTERPRISE VALUE OF
MORE
THAN $1.3 BILLION AT CLOSING AND ABOUT $1.7 BILLION INCLUSIVE OF
CONTINGENT CONSIDERATION
    * ALGOMA STEEL - A SUBSIDIARY OF ALGOMA WILL BE MERGED WITH
AND
INTO LEGATO, WITH LEGATO SURVIVING MERGER AS A WHOLLY-OWNED
SUBSIDIARY OF ALGOMA
    * ALGOMA STEEL - LEGATO'S CURRENT STOCKHOLDERS WILL HOLD
APPROXIMATELY 19% OF COMBINED COMPANY'S OUTSTANDING COMMON
SHARES

Source text for Eikon:  ID:nCNW73MPKa 
Further company coverage:  LEGO.O 

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