The trucking company TransForce is said to be gaining the support of a fairly large number of shareholders for its offer of $495 million in cash on ConTrans Ontario group, but it continues to wait for a decision on Competition Bureau of Canada on this issue. As a result, TransForce has pushed the expiration date of its offer until November 11.
If approved, the deal will allow Contrans to join the ranks of Canada’s largest group of trucking and logistics.
Shareholders of ConTrans (TSX: CSS), established in Woodstock, should receive $15 per share if the transaction goes ahead. This amount includes $14.60 in cash from TransForce and a special dividend of 40 cents per share from Contrans.
TransForce reported receiving actions or support of shareholders representing 70 percent of the Class A shares of ConTrans and all shares of Class B multiple voting rights, which is higher than the two-thirds majority required under the Offer.
TransForce posted on Thursday, after the market close, a net profit of $ 41.5 million, or 41 cents per share for its third quarter, down from the $44 million, or 45 cents per share, the same period last year.
Its revenue for the quarter ended Sept. 30 leapt to $ 981.1 million, compared to revenues of $775.1 million a year earlier, mainly due to acquisitions.