MONTREAL – TransForce Inc. (TSX:TFI) has sweetened its bid for fellow trucking company Vitran Corp. (TSX:VTN).
Quebec-basedTransForce says it is now willing to pay US$6.50 in cash for all of the shares of Vitran it does not already own in a deal that values Vitran at more than $106 million.
TransForce, which originally bid $4.50 a share for the company back in September, said the Vitran board has confirmed that the new offer is a “superior proposal” to its takeover agreement with an affiliate of Manitoulin Transport Inc.
That deal contemplates the sale of Vitran at a price of US$6 per share and Manitoulin now has the right under its agreement to match the TransForce offer.
“With the exception of the price per share, the terms and conditions of TransForce’s offer are virtually identical to those set out in the arrangement agreement between Vitran and Manitoulin Transport,” according to TransForce, which currently owns just under 20 per cent of Vitran’s outstanding shares.
TransForce Inc. operates across North America in the transportation and logistics industry, providing package and courier services, truckload and less than truckload hauling and specialized services to the energy sector, waste management, logistics and others.
Vitran provides freight surface transportation throughout Canada and most U.S. states.