180 Degree, Mount Logan Agree To Merge In All-stock Deal At Estimated Enterprise Value Of $139 Mln

(RTTNews) - 180 Degree Capital Corp. (TURN), an investment company, Friday announced that it has signed a definitive agreement to combine with Mount Logan Capital Inc. in an all-stock transaction at an estimated pro forma enterprise value of $139 million.

Shareholders of both companies will receive newly issued shares of New Mount Logan based on the ratio of 180 Degree Capital's net asset value or NAV per share to Mount Logan's valuation of $67.4 million at signing, with some pre-closing adjustments.

As of January 15, 2025, the estimated NAV of 180 Degree Capital shows a 24 percent premium over its closing stock price on that date.

Based on this, the estimated post-merger shareholder ownership would be about 40 percent for current 180 Degree Capital shareholders and 60 percent for current Mount Logan shareholders.

After the transaction, both companies will become wholly owned subsidiaries of New Mount Logan, which will be listed on Nasdaq under the symbol MLCI.

Ted Goldthorpe, the CEO of Mount Logan, is expected to become the CEO and Chairman of New Mount Logan at closing. New Mount Logan will have a seven-member Board of Directors

In the pre-market trading, TURN is 2.43% high at $3.80 on the Nasdaq.