Business
TransForce signs agreement to acquire Contrans Group Inc.
All amounts expressed in CAD$ MONTREAL and WOODSTOCK, ON , July 24, 2014 /CNW Te...
About this update from Tfi International Inc.
[{"type":"text","content":"\n\n\nAll amounts expressed in CAD$\n\n\nMONTREAL and WOODSTOCK, ON, July 24, 2014 /CNW Telbec/ - TransForce Inc.\n (TSX: TFI) (OTCQX: TFIFF), a North American leader in the\n transportation and logistics industry, and Contrans Group Inc. (TSX:\n CSS), a diverse provider of specialized transportation services, today\n announced that they have entered into a Support Agreement for the\n acquisition by TransForce, for $14.60 in cash per share, of all of the\n issued and outstanding Class A subordinate voting shares and Class B\n multiple voting shares of Contrans by way of a friendly, Board-approved\n take-over bid (the \"Offer\").  The total equity purchase price is\n approximately $495 million.\n\n\nThe Support Agreement provides that if all conditions of the Offer have\n been satisfied or are waived by TransForce, Contrans will declare a\n special dividend of $0.40 per share in respect of the recent sale of\n its Waste Transportation segment.  Together with the $14.60 per share\n Offer price, the total consideration of $15.00 represents a premium of\n approximately 16.7% to the 52-week volume weighted average trading\n price of Contrans' Class A shares on the Toronto Stock Exchange and a\n premium of approximately 5.1% to the volume weighted average trading\n price of Contrans' Class A shares for the ten trading days ended\n July 24, 2014.  The special dividend will be paid to Contrans\n shareholders of record immediately prior to TransForce taking-up and\n paying for tendered shares under the Offer.  As a result, Contrans\n shareholders who tender their shares to the Offer will receive the\n special dividend, if paid.\n\n\nThe Board of Directors of Contrans, after consultation with its\n financial and legal advisors, has unanimously approved entering into\n the Support Agreement and unanimously recommends that Contrans\n shareholders tender their shares to the Offer.  Cormark Securities\n Inc., the financial advisor to Contrans, has provided a fairness\n opinion to the effect that, as of the date of the opinion and subject\n to the limitations and qualifications therein, the consideration of\n $14.60 in cash per share to be received by Contrans shareholders is\n fair, from a financial point of view, to the Contrans shareholders.\n\n\nAll of Contrans' directors and exec...