Publicly traded Rocky Mountain Dealerships has struck a deal with its chairman and CEO through which it will become a private company.
A numbered company controlled by chairman Matthew Campbell and CEO Garrett Ganden has agreed to pay $7 each for the shares they do not currently own, said the Calgary-based firm.
The arrangement values the dealer group, which has 36 locations in Alberta, Saskatchewan and Manitoba, at $135 million (or $188 million including debt and lease obligations and excluding floor plan payables).
Directors and officers who own or control about 13.6 percent of the shares have agreed to support the arrangement, the company said. The deal requires two-thirds support at a special meeting to be held in December.
The transaction has been endorsed by a special committee of independent directors formed to assess the fair market value of the shares and evaluate the proposal.
Source: The Canadian Press