Poseidon to take asset management company Atlas Corporation private

Atlas Corporation, a New York Stock Exchange (NYSE) listed asset management company, is set to become private in an all-cash deal worth around $10.9 billion with Poseidon Acquisition Corp.

Poseidon Acquisition Corp is an entity formed by David Sokol, who is Atlas Corporation board chairman, and certain affiliates of Fairfax Financial Holdings, Washington Family, and Ocean Network Express (ONE), and some of their respective affiliates.

Fairfax Financial, the Washington Family, and David Sokol currently own approximately 68% of the outstanding common shares in Atlas Corporation.

Atlas Corporation makes investments in long-term, risk-adjusted returns in infrastructure assets in the energy sector, maritime sector, and other infrastructure verticals.

As part of the transaction, Poseidon will pay $15.5 per each acquired share, marking a 34% premium to Atlas Corporation’s unaffected share price as of 4 August 2022.

Nicholas Pitts-Tucker — Atlas Board Special Committee Chair said: “We are pleased to have reached this agreement which, through the combination with Poseidon, introduces Atlas to an important corporate sponsor in the form of ONE.

“The agreement also provides Atlas’ minority shareholders with a certain cash outcome due to be paid on closing, subject to the approval of a majority of the minority shareholders.

“Fairfax, Washington, Mr. Sokol and ONE will be outstanding partners as Atlas advances its operational improvements and drives growth to support its customers and enhance opportunities for its employees.”

The Washington Family and Fairfax Financial will own a majority of the equity of Atlas Corporation upon the completion of the transaction.

Atlas Corporation’s common shares will stop trading on the NYSE; however, its preferred shares will continue to trade on the stock exchange under existing terms on the completion of the deal.

Anticipated to close in the first half of 2023, the transaction is subject to approval by holders of a majority of Atlas Corporation common shares not owned by Poseidon and its affiliates, regulatory approvals, third-party consents and certain closing conditions.