Steel Partners Holdings L.P. Approves Short-Form Merger with Steel Connect, Inc.

Steel Partners Holdings L.P. (NYSE:SPLP) has announced a significant development in its corporate strategy. The company, along with its affiliates, owning more than 90% of the outstanding common stock of Steel Connect, Inc. (the “Short-Form Merger”). The merger, approved by the Audit Committee of Steel Connect’s Board of Directors, will be undertaken following necessary conditions as outlined below.

The Short-Form Merger involves a meticulous process where a subsidiary of Steel Partners, termed Acquisition Co., will merge with Steel Connect as the surviving entity, aligning with Section 253 of the Delaware General Corporation Law. The merger aims at streamlining operations and enhancing business efficiency within the entities.

Key conditions set forth by the Audit Committee for the Short-Form Merger include:
– Holders of Common Stock to receive $11.45 in cash per share upon the merger
– Provisions for Reith Net Litigation Proceeds distribution
– Ensuring all outstanding restricted stock awards fully vest before the merger takes effect
– Compliance with regulatory requirements including filing details with Steel Connect’s stockholders

Furthermore, a Contingent Value Rights Agreement document outlines the rights of shareholders in case the Reith Net Litigation Proceeds, from a legal action involving Steel Connect, are not distributed before the merger. The agreement specifies the handling of any remaining funds and the appointment of Equiniti Trust Company, LLC as the Rights Agent.

The completion of the merger will result in the delisting of Steel Connect’s common stock from the NASDAQ Stock Market. This move underscores Steel Partners’ strategic efforts and ongoing commitment to maximizing shareholder value.

Investors and stakeholders are advised to stay updated with official communication channels regarding further developments related to this merger, which significantly impacts the operations and structure of Steel Partners Holdings L.P. and Steel Connect, Inc. as they proceed with these strategic initiatives.

This news delivers a crucial update on the strategic alterations within Steel Partners Holdings L.P. and its roadmap in merging with Steel Connect, Inc., portraying a significant step forward in their corporate journey.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Steel Partners’s 8K filing here.

About Steel Partners

Steel Partners Holdings L.P., together with its subsidiaries, engages in industrial products, energy, banking, defense, supply chain management, logistics, and youth sports businesses worldwide. It operates through Diversified Industrial, Energy, Financial Services, and Supply Chain segments. The company fabricates precious metals and alloys into brazing alloys; manufactures and sells seamless stainless steel tubing coils; fasteners, adhesives, and fastening systems for the commercial low slope roofing industry, as well as specialty fasteners for the building products industry; and woven substrates of fiberglass, quartz, carbon, and aramid materials for specialty applications.