Algoma Steel Incorporated is merging with an American-based company to increase its capital as a publicly-traded institution.
In a press release, the privately-owned Canadian company, based out of in Sault Ste. Marie, states it entered into a billion-dollar-plus merger agreement with Legato Merger Corporation, a New York-based special-purpose acquisition company.
If all terms are met by the fall, the move will provide the mill with funding to invest in electric arc steelmaking while also reducing its carbon footprint by approximately 70 per cent.
With becoming a publicly listed company its shares could be traded on the Nasdaq and Toronto stock exchanges.
Present Algoma CEO Michael McQuade states the current management will continue with a change to the board structure to include six Algoma directors, three from Legato and one joint nomination.
Both companies are now waiting for Legato’s shareholders to approve the move before it is finalized later in the year.