Vitran Corp. announced Friday it has received an unsolicited offer from TransForce to acquire all of its outstanding common shares for $6.50 per share, upping the Dec. 9 acquisition offer proposed by Manitoulin Transport.
The Vitran board agreed to the deal with Manitoulin and said it has not changed its decision, but that the TransForce offer constitutes a "superior proposal." Manitoulin can now amend its original offer if it sees fit; if the company amends its offer so that the TransForce deal is no longer superior, Vitran must accept Manitoulin's new proposal. If the Manitoulin proposal does not change, Vitran can accept the new offer and pay a $4 million termination fee to Manitoulin, the company said.
"The board cautions that there can be no assurance that the TransForce offer will lead to the termination of the Manitoulin Agreement and the execution of an arrangement agreement with TransForce," Vitran said in a statement, "or that the transaction contemplated by the TransForce offer will be approved by shareholders or consummated."