Warren G. Lichtenstein, Executive Chairman and Interim CEO of Steel Connect, Inc. (NASDAQ:STCN), recently sold 182,526 shares of the company, totaling approximately $2.09 million. The sale was executed at a price of $11.45 per share. The company, currently trading at just 3.8 times earnings and 0.49 times book value, shows strong financial fundamentals with a healthy current ratio of 4.27. According to InvestingPro analysis, the stock appears undervalued at current levels. This transaction was part of a merger agreement where Steel Excel Sub I, LLC merged with Steel Connect, making it a wholly-owned subsidiary of Steel Partners Holdings L.P. Following the transaction, Lichtenstein holds 9,773 shares directly. The sale was disclosed in a filing with the Securities and Exchange Commission. The company demonstrates robust profitability with a 19.4% return on assets and maintains strong cash positions. InvestingPro subscribers can access 8 additional key insights about Steel Connect's financial health and valuation metrics.
"In other recent news, Steel Connect has been acquired by an indirect, wholly-owned subsidiary of Steel Partners Holdings L.P. This merger marked a significant shift in control, with Steel Connect becoming an indirect, wholly-owned subsidiary of Steel Partners. Following this, Steel Connect's common stock was delisted from the NASDAQ Capital Market. As part of these recent developments, Steel Connect also finalized a $6 million settlement in a shareholder litigation case known as Reith v. Lichtenstein, et al. The funds from this settlement will be distributed to common stockholders after deducting court-approved legal fees and expenses. Furthermore, Steel Connect announced a cash merger with Steel Partners Holdings, which led to Steel Connect becoming a wholly-owned subsidiary of Steel Partners. Shareholders of Steel Connect are expected to receive $11.45 in cash per share at the effective time of the merger. Additionally, if the merger proceeds and the funds from the lawsuit are not yet distributed, each share of common stock will be entitled to one contingent value right to receive a portion of the proceeds under a Contingent Value Rights Agreement. These recent events underscore Steel Connect's strategic decisions and active management."
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