CALGARY — Rocky Mountain Dealerships Inc. shareholders are being asked to vote next week in favour of a go-private arrangement after no alternative proposals were made during a 35-day solicitation process.
The Calgary-based farm equipment company has called a virtual special meeting for Thursday, Dec. 17, where investors can vote to sell each share they own for $7 to a numbered company controlled by chairman Matthew Campbell and CEO Garrett Ganden.
The deal values the company, which says it is the largest farm equipment dealer in Canada with 36 locations in Alberta, Saskatchewan and Manitoba, at $135 million (or $188 million including debt and lease obligations and excluding floor plan payables).
In trading on the Toronto Stock Exchange on Monday, Rocky Mountain fell by as much as 21 cents to $6.91 from Friday's close of $7.12.
Rocky Mountain says adviser RBC Capital Markets contacted 49 potential buyers during the solicitation process but, although six signed confidentiality agreements to view non-public information, none made an alternative offer.
Directors and officers who own or control about 13.6 per cent of the shares have agreed to support the arrangement, the company says. The deal requires the support of holders of two-thirds of the shares to go forward.
This report by The Canadian Press was first published Dec. 7, 2020.
Companies in this story: (TSX:RME)
The Canadian Press
