Paul, Weiss advised Algoma Steel Inc. on the deal.
Algoma Steel Inc., a leading independent steel producer with extensive steelmaking and finishing operations in Sault Ste. Marie, Ontario, Canada, completed its combination with Legato Merger Corp., a special purpose acquisition company. As a result of the all-stock transaction, Algoma will become a publicly listed company with an enterprise value of approximately $1.7 billion, including contingent consideration.
The transaction will be funded by the approximately $236 million held in Legato’s trust account and by proceeds from a fully committed PIPE (private investment in public equity) of $100 million at $10.00 per share. The PIPE includes significant investments from steel industry participants and from Legato’s Chairman, TD Wealth Management, Vantage Asset Management, JC Clark, Hite and Goodwood Fund. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions and regulatory approvals.
The Paul, Weiss team was led by corporate partner Adam Givertz (Picture) and corporate counsel Christian Kurtz and David Curtiss; tax partners Brian Grieve and Brian Krause; and restructuring partner Paul Basta.
Involved fees earner: Paul Basta – Kirkland & Ellis; David Curtiss – Paul Weiss Rifkind Wharton & Garrison; Adam Givertz – Paul Weiss Rifkind Wharton & Garrison; Brian Grieve – Paul Weiss Rifkind Wharton & Garrison; Christian Kurtz – Paul Weiss Rifkind Wharton & Garrison; Brian Krause – Skadden Arps Slate Meager & Flom;
Clients: Algoma Steel;