News Summary
Kahn Swick & Foti, led by former Louisiana Attorney General Charles C. Foti, Jr., investigates the proposed acquisition of SigmaTron International by Transom Capital Group. Shareholders are offered $3.02 per share, and the inquiry aims to assess the fairness of this valuation. The acquisition, with a total enterprise value of around $83 million, raises concerns about whether SigmaTron’s board has met its fiduciary duties to its shareholders. Other legal entities are also conducting similar investigations as stakeholders monitor the situation closely.
New Orleans, LA – Kahn Swick & Foti, LLC (KSF), led by Charles C. Foti, Jr., former Attorney General of Louisiana, is currently investigating the proposed acquisition of SigmaTron International, Inc. (NasdaqCM: SGMA) by Transom Capital Group, LLC. Under this proposed transaction, shareholders of SigmaTron will be offered $3.02 in cash for each share they own.
The investigation aims to determine whether the offered price sufficiently reflects SigmaTron’s true value or if it significantly undervalues the company. KSF is particularly focused on the pricing and procedural aspects leading up to the proposed acquisition to ensure fairness for shareholders. Individuals who believe that their rights may be compromised due to the transaction are encouraged to reach out to KSF for a discussion of their legal options without obligation.
This proposed acquisition is structured as a tender offer, emphasizing the urgency of the situation. The total enterprise value of the transaction is estimated to be around $83 million, and the $3.02 price represents a premium of approximately 134% over SigmaTron’s closing market price on May 20, 2025. Additionally, it is about 136% higher than the company’s 30-day volume-weighted average price.
If the tender offer is successful, SigmaTron will become fully owned by Transom Capital Group and will no longer be listed on the Nasdaq exchange. The acquisition is expected to close in the third quarter of 2025, subject to the completion of the tender offer and the fulfillment of customary closing conditions. SigmaTron’s stockholders will need to validly tender shares that constitute at least a majority of the company’s voting power for the acquisition to proceed. Following the tender offer, Transom intends to acquire any untendered shares through a second-step merger, maintaining the same financial consideration.
The SigmaTron Board of Directors has recommended that shareholders tender their shares in accordance with the proposal. Legal advisors for Transom include Kirkland & Ellis LLP, while Lincoln International has taken on the role of exclusive financial advisor for SigmaTron.
Additionally, the ongoing investigation highlights broader scrutiny regarding whether SigmaTron’s board has upheld its fiduciary responsibilities to obtain the best possible value for its shareholders. Another firm, Halper Sadeh LLC, is also conducting an investigation related to the fairness of the proposed sale and is looking into potential legal actions on behalf of SigmaTron investors.
For those seeking further details about the investigation, KSF has set up a dedicated webpage focusing on SigmaTron’s situation, ensuring that information surrounding shareholder rights and the acquisition process is accessible.
As developments surrounding this acquisition unfold, SigmaTron stakeholders will be keeping a close watch to assess the implications of the proposal and the results of the investigations initiated by KSF and Halper Sadeh LLC. Stakeholders have the right to scrutinize the adequacy of the financial offer while the transaction is still pending.
In summary, the unfolding circumstances around SigmaTron International’s acquisition by Transom Capital Group highlight significant concerns regarding valuation and shareholder rights, which are central to the ongoing investigations by Kahn Swick & Foti and other legal entities.
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Additional Resources
- Business Wire: SIGMATRON INTERNATIONAL INVESTOR ALERT
- Wikipedia: SigmaTron International
- GlobeNewswire: Transom Capital and SigmaTron International Merge
- Google Search: SigmaTron International
- Business Wire: SGMA Stock Alert by Halper Sadeh LLC
- Encyclopedia Britannica: Transom Capital
- GlobeNewswire: SigmaTron Reports Financial Results
- Google News: Transom Capital Sigma Tron
