Legato Merger Corp. (LEGO) Shareholders Approve Algoma Steel Deal
Legato Merger Corp. (NASDAQ:LEGO) announced in a press release today that it received shareholder approval of its combination with steel producer Algoma Steel Inc. in a meeting held earlier this morning.
LEGO, which raised $205 million at its IPO, reported that holders of just 716 shares were redeemed in connection with the merger, representing 0.003% of the SPAC’s trust. This is the best redemption result since Fifth Wall’s August 23rd vote to combine with SmartRent, at which only 246 shares redeemed. Approximately 74% of the LEGO shares of common stock voted at today’s special meeting and approximately 92% of the shares voted were in favor the merger.
The press release did not disclose an exact date for the closing of the deal, but noted it is expected to occur as soon as practicable. The parties anticipate on closing the transaction at some point during the week of October 18th.
Following the closing, the common shares of Algoma are expected to trade on each of the Nasdaq and the Toronto Stock Exchange under the new symbol “ASTL”, and the warrants of Algoma will trade on the Nasdaq under the new symbol “ASTLW” and on the TSX under the new symbol “ASTL.WT.”
Legato originally announced the $1.7 billion deal with Algoma Steel on May 25. The Ontario-based company is a fully-integrated steel manufacturer of hot and cold rolled steel products.
ADVISORS
- Paul, Weiss, Rifkind, Wharton & Garrison LLP and Goodmans LLP are acting as legal counsel to Algoma
- Jefferies LLC is acting as financial advisor to Algoma.
- Graubard Miller is acting as legal counsel to Legato
- EarlyBirdCapital, Inc., BMO Capital Markets and Maison Placements Canada are acting as financial advisors to Legato.