Algoma Steel is to become a public company again as the century-old
Canadian steelmaker to be taken over by New York-based acquisition firm Legato Merger Corp.
Officials from both companies will have more information about the proposed deal at a news conference on Tuesday morning,
but the deal will give Algoma’s current owners just over $1.1 billion US worth of new shares in the combined company.
That breaks down as $750 million worth of shares in the new company upfront,
Legato itself only went public in an initial public offering earlier this year,
raising $236 million to fund acquisitions.
The company is a special purpose acquisition company, or SPAC,
publicly traded pools of money solely to purchase other companies.