Share this article
Transaction to result in Algoma Steel becoming a publicly listed company.
At $10.00 per share of Legato common stock, this all-stock transaction values the combined company at an enterprise value of approximately $1.7 billion including contingent consideration.
At an enterprise value of approximately $1.7 billion including contingent consideration, the combined company would be valued at 1.9x expected calendar year 2021 Adjusted EBITDA of $901 million.
Transaction expected to provide Algoma Steel with $306 million of capital, including a $100 million fully committed private placement with key investors.
New equity capital will provide Algoma Steel with flexibility to continue with strategic and transformational investments in the business, including the potential for a substantial investment in electric arc steelmaking which would enhance earnings potential and substantially reduce Algoma s carbon footprint by approximately 70%.
File photo by Kenneth Armstrong/SooToday
Algoma Steel Inc. confirmed late Monday that it has entered into a billion-dollar-plus merger agreement with Legato Merger Corp, a New York-based special-purpose acquisition company.
The deal is expected to close in the third quarter of 2021, providing the Sault mill with hundreds of millions of dollars to invest in electric arc steelmaking and to reduce its carbon footprint by approximately 70 per cent.
The following is excerpted from the Algoma Steel announcement:
Algoma Steel and Legato Merger Corp. sign definitive merger agreement
transaction to result in Algoma Steel becoming a publicly listed company
all dollar figures in this press release are in U.S. dollars unless otherwise indicated
Hull Street Energy Acquires Foundation Solar Partners
Hull Street Energy has entered into a definitive agreement to acquire the management team and development pipeline of
Foundation Solar Partners, an independent renewable development company that specializes in identifying and developing utility-scale solar generation projects in select markets in the eastern United States. Foundation Solar Partners was established in 2019 and to date has developed and sold 1GW of solar projects in the PJM transmission territory.
Baker Botts LLP acted as legal counsel to Hull Street Energy and
The Law Office of Jon Staley acted as legal counsel to Foundation Solar Partners.
An affiliate of
Algoma Steel and Legato Merger Corp Sign Definitive Merger Agreement prnewswire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from prnewswire.com Daily Mail and Mail on Sunday newspapers.