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

Steel Partners Holdings L.P. (NYSE:SPLP) has announced the successful completion of a short-form merger with Steel Connect, Inc., as was previously disclosed in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.

The Audit Committee of the Board of Directors of Steel Connect, Inc. approved the merger, which involved Steel Excel Sub I, LLC, merging with and into Steel Connect, making the latter an indirect wholly-owned subsidiary of Steel Partners. The transaction was executed in compliance with Section 267 of the Delaware General Corporation Law.

Funds totaling approximately $31.2 million were used for payment of the aggregate cash consideration in the merger and associated fees and expenses. These funds were drawn from existing amounts available under Steel Partners’ senior credit agreement.

Additionally, on the closing date, Steel Partners entered into a Contingent Value Rights Agreement (the “CVR Agreement”) with Equiniti Trust Company, LLC, under which eligible holders of Common Stock received contingent value rights related to the Reith Net Litigation Proceeds. The CVRs do not grant any equity or ownership interest in Steel Partners or its affiliates.

Following the merger, Steel Connect notified the NASDAQ Capital Market of its intention to remove the Common Stock listing and file for delisting and deregistration under the Securities Exchange Act of 1934. Steel Connect also plans to file a certification on Form 15 with the SEC, suspending reporting obligations under Sections 13 and 15(d) of the Exchange Act with respect to the Common Stock.

The company stated that all requisite securities registrations for Common Units and 6.0% Series A Preferred Units on the New York Stock Exchange continue unaffected.

For further details on the CVR Agreement and specifics on the execution, appointment, resignations, and role of the Rights Agent, interested parties may refer to the original 8-K filing with the Securities and Exchange Commission.

This article does not serve as official solicitation or financial guidance; investors are encouraged to conduct thorough analyses and seek professional advice before making investment decisions.

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.

Steel Partners Company Profile

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.