FOG BLOG CANADIAN BUSINESS LOG: ALGOMA STEEL GOES PUBLIC AGAIN WITH OVER $1 BILLION TAKEOVER:

Canadian company Algoma Steel to go public again in takeover worth more than $1B US.....Sault Ste. Marie-based steelmaker can produce about 2.8 million tonnes of steel per year.....Algoma Steel is to become a public company again as the century-old Canadian steelmaker has agreed to be taken over by New York-based acquisition firm Legato Merger Corp.

Officials from both companies will have more information about the proposed deal at a news conference on Tuesday morning, but the deal will give Algoma's current owners just over $1.1 billion US worth of new shares in the combined company. That breaks down as $750 million worth of shares in the new company up front, plus another chunk of shares currently worth $375 million if certain financial targets are hit.

Legato itself only went public in an initial public offering earlier this year, raising $236 million to fund acquisitions.

The company is what's known as a special purpose acquisition company, or SPAC, which are essentially publicly traded pools of money created solely to purchase other companies.