Algoma Steel in Talks to go Public
Bloomberg, citing to people with knowledge of the matter, reported that Canada’s Algoma Steel Inc is in talks to go public through a merger with
Bloomberg, citing to people with knowledge of the matter, reported that Canada’s Algoma Steel Inc is in talks to go public through a merger with Legato Merger Corp, a blank check-firm. Sources said “A deal is set to value the combined entity at more than USD 1 billion. Terms could change and, as with all transactions that aren’t yet finalized, its possible talks could collapse.”
Legato, led by a management team including Mr David Sgro, Mr Eric Rosenfeld and Mr Brian Pratt, raised about USD 236 million in a January initial public offering. The special purpose acquisition company has said it will focus on finding a target business in the industrial, renewables, infrastructure, engineering or construction industries.
Algoma, based in Sault Ste Marie, Ontario and led by Chief Executive Officer Mr Michael McQuade, is a producer of hot and cold-rolled steel products. The company has said its estimated production capacity is about 2.8 million tons per year.