Under the terms of the agreement, Steel Connect shareholders will receive $1.35 per share in cash and one contingent value right to receive their pro rata share of net proceeds. The total proceeds could exceed $80 million, plus certain related costs and expenses, if Steel Connect's subsidiary, ModusLink is sold during the two-year period after the deal closes.
The deal, which is subject to shareholder approval, is expected to complete in H2 after which Steel Connect will become a wholly owned subsidiary of Steel Partners. Both companies' boards have approved the transaction.
The deal also includes a go-shop period that expires on July 12.
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