logo
Share SHARE
FONT-SIZE Plus   Neg

Steel Holdings To Purchase 7.5 Mln ModusLink Shares - Quick Facts

ModusLink Global Solutions Inc. (MLNK) announced it has entered into an investment agreement with Steel Partners Holdings L.P. (SPLP). 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), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Xiaomi Corp., nicknamed the "Apple of China" is planning to launch laptops, a report by Bloomberg said. The Chinese brand has been pausing a direct challenge to major smart phone brands in Asian markets in the recent years. It has planned to win over China, India and Brazil markets those together would account for one third of the worldwide sales. Value-priced fashion apparel and accessories retailer Cato Corp. (CATO) Thursday announced a four percent increase in comparable store sales for August. Sales were for the four week period was up five percent to $67 percent from $63.6 million last year. For the thirty weeks ended August 29, the... Simple, uncluttered, colorful and friendly. That's how Google describes its new logo. The new typeface is sans-serif and without any shadow or embossing, unlike its earlier logos. It has given blue, red, yellow and green to its letters. The "e" is slightly tilted and stylized. On its browser tabs, it has replaced the lower case blue colored "g" with an upper case "G" in four colors.
comments powered by Disqus
Follow RTT