Business
Rocky Mountain Announces 6% Price Increase Under Go-Private Transaction to $7.41 per Share and Significant Voting Support Agreements
Increase in offer price to $7.41, representing a 34% premium to the unaffected share price o...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"Rocky Mountain Announces 6% Price Increase Under Go-Private Transaction to $7.41 per Share and Significant Voting Support AgreementsIncrease in offer price to $7.41, representing a 34% premium to the unaffected share price of the CompanyIncreased offer price in excess of the mid-point of the independent formal valuation rangeRevised offer receives unanimous support from the Special Committee and the BoardVoting support agreements from over 32% of outstanding shares in favour of the transaction, including from founder and long-time former Board member Derek StimsonShareholders are urged to vote before the December 15th deadlineCalgary, Alberta--(Newsfile Corp. - December 10, 2020) - Rocky Mountain Dealerships Inc. (TSX: RME) (\"RME\" or the \"Company\") announces that 2223890 Alberta Ltd. (\"AcquireCo\") has agreed to increase the cash purchase price for all of RME's issued and outstanding common shares (the \"RME Shares\"), other than certain shares held by an interested party (the \"Excluded Shareholder\"), pursuant to the previously announced go-private transaction (the \"Proposed Transaction\") from $7.00 to $7.41 per RME Share. RME and AcquireCo have amended the arrangement agreement dated November 1, 2020 (the \"Arrangement Agreement\") to reflect this increased consideration, which values RME at $144 million on an equity basis and at $195 million on an enterprise basis, including debt (net of cash) and lease obligations, and excluding floor plan payables.The increased purchase price represents a 34.2% premium to the closing share price of the RME Shares on October 30, 2020, the last trading day prior to announcement of the Proposed Transaction, and a 33.2% premium to the 20-day volume-weighted average price of the RME Shares for the period ended October 30, 2020. Further, the increased purchase price is above the mid-point of the fair market value range of $6.85 to $7.90 per RME Share determined by Deloitte LLP pursuant to its independent formal valuation of the RME Shares in accordance with Multilateral Instrument 61‐101 as at October 31, 2020.Voting Support AgreementsThe amendment to the Arrangement Agreement results from discussions between AcquireCo and certain securityholders of RME, including Derek Stimson, a former long-time director of RME who beneficially owns or has control or direction over 1,853,603 RME ...