Canam stock nearly doubles on going-private offer for Quebec-based company

Canam stock nearly doubles on going-private offer for Quebec-based company

ST-GEORGES, Que. — Canam Group Inc. (TSX:CAM) is preparing to go private, with core shareholders in the Quebec-based company offering to buy up all the publicly traded shares for nearly double their recent price.

Shares in Canam, which specializes in supplying structural steel for construction of buildings and bridges, jumped 96 per cent to $12.16 in morning trading, just short of the offer of $12.30 per share

Under the proposal, the majority shareholder of the private company would be American Industrial Partners, which would also control the board of directors.

Shareholders other than members of the Dutil Family will be offered cash for their stock, subject to shareholder approvals.

The Dutil Family will receive stock in the private company and vote in favour of the deal. In addition, the Quebec’s Caisse de depot pension fund and Solidarity investment fund are expected to roll over some or all of their stock.

As a result, about 40 per cent of the privatized company’s stock will be owned by the Dutil family and the Quebec funds.

The company — which has 23 plants across North America — says its head office will remain in Quebec.

Analyst Sara O’Brien of RBC Dominion Securities says the buyout offer values Canam at about $875 million, including assumed debt.

The Canadian Press

Categories: Business

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