Infrastructure: Steel Makes $30M Investment in ModusLink
The investment comes after ModusLink fired top executives for accounting mistakes
Steel Partners Holdings LP (NYSE: SPLP) will make a $30 million investment in ModusLink Global Solutions Inc. (Nasdaq: MLNK).
Under the terms of the agreement, Steel will purchase 7.5 million newly issued shares of common stock, priced at $4 per share. Modus will also issue Steel warrants to buy an addition 2 million shares for $5 per share.
ModusLink, headquartered in Waltham, Mass., provides supply chain and logistics services.
Steel with affiliate Handy & Harman Ltd. (Nasdaq: HNH) own 14.9 percent of ModusLink. The capital investment comes at the same time as two of Steel’s employees, Warren Lichtenstein and Glen Kassan, will be appointed to ModusLink’s board.
Handy, which 52.4 percent of is owned by Steel, insisted on board representation after ModusLink announced on June 11 that there had been accounting improprieties, and fired two of its top executives, including chief executive Joseph Lawler.
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