Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Steel Holdings To Purchase 7.5 Mln ModusLink Shares - Quick Facts

RELATED NEWS
Trade MLNK now with 
2/11/2013 9:52 AM ET

ModusLink Global Solutions Inc. (MLNK: Quote) announced it has entered into an investment agreement with Steel Partners Holdings L.P. (SPLP: Quote). Steel Holdings would purchase 7.5 million newly issued shares of ModusLink common stock at a price of $4.00 per share, representing a cash investment in the company, before fees and expenses, of $30 million. At the closing, ModusLink would issue Steel Holdings warrants to acquire 2.0 million shares at an exercise price of $5.00 per share. The Steel Group may purchase up to approximately 1.4 million shares of ModusLink's outstanding common stock.

Currently, Steel Partners Holdings L.P., together with certain affiliates including Handy & Harman Ltd. (HNH: Quote), beneficially owns 14.9 percent of ModusLink's outstanding shares. If all stock is purchased and all warrants are exercised as permitted under the agreement, the Steel Group would own approximately 32.6 percent of ModusLink's outstanding shares.

ModusLink also announced it has reached a settlement agreement with Handy & Harman in relation to the Annual Meeting. ModusLink has agreed to nominate and solicit proxies solely for the Steel Group representatives Warren Lichtenstein and Glen Kassan for election as Class I directors. Handy & Harman has agreed to withdraw its preliminary proxy statement and to end its proxy solicitation, and has entered into certain other standstill arrangements with ModusLink.

ModusLink Directors Edward Lucente and Joseph O'Donnell would step down from the Board, and current Chairman Francis Jules and Director and Audit Committee Chairman Michael Mardy would each be reappointed to the Board as Class II directors. Lichtenstein would be designated Chairman of the Board. The size of the Board would be fixed at seven directors immediately following the Annual Meeting.

Register
To receive FREE breaking news email alerts for ModusLink Global Solutions, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Starbucks Corp. said Thursday after the markets closed that its second quarter profit rose 9.4% from last year, helped by higher revenue. The company's quarterly earnings per share came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. The world's largest specialty coffee retailer also raised its full year earnings outlook. Software giant Microsoft Corp. said Thursday after the markets closed that its third quarter profit fell 6.6% from last year, when results were boosted by special upgrade offer revenues. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue. Apple Inc. said Wednesday after the markets closed that its second quarter profit rose 7% from last year, as sales surged and margins improved amid strong sales of its iPhones. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.