Canada's Algoma Steel to go public via merger with blank-check firm Legato

Algoma Steel

25/05/2021 03:55

May 24 (Reuters) - Canadian steelmaker Algoma Steel is
becoming a publicly listed company through a merger agreed with
New York-based blank-check firm Legato Merger Corp  LEGO.O  in a
deal that will value the combined company at more than $1
billion.
    "Assuming no redemptions by Legato stockholders, the
all-stock transaction implies a pro forma enterprise value of
more than $1.3 billion at closing and approximately $1.7 billion
inclusive of contingent consideration," Algoma Steel said in a
statement on Monday.
    The deal is expected to provide Algoma Steel with $306
million of capital, including a $100 million fully committed
private placement with key investors, the statement added https://prn.to/2SsIJnS.
    Algoma Steel will become a publicly listed company as a
result of the deal, with its shares traded on the Nasdaq stock
market. Algoma also intends to apply to list its common shares
on the Toronto Stock Exchange, the Canadian steelmaker said.
    Special-purpose acquisition companies (SPACs), or
blank-check firms, are shell companies that raise funds through
an initial public offering to take a private company public
through a merger at a later date.

 (Reporting by Kanishka Singh in Bengaluru; Editing by
Muralikumar Anantharaman)
 ((Kanishka.Singh@thomsonreuters.com; +91 8061822801;))