MONTREAL – TransForce Inc. (TSX:TFI) says it has reduced its holdings in fellow transportation company Vitran Corp. (TSX:VTN) by about one-third to about 7.7 per cent of the Toronto-based company’s equity.
TransForce says it sold 500,000 Vitran shares last week for US$6.20 per share on the Nasdaq market. The stock, which provided US$3.1 million to TransForce, was sold by its subsidiary TFI Holdings Inc.
TransForce did not disclose a reason for disposing of the stock, saying only that the securities are for investment purposes and that it reserves the right to increase or decrease its holdings depending on the conditions.
The Montreal-based company had previously announced it acquired a 10.75 per cent stake in Vitran over several weeks ending Jan. 24, 2013 for an average price of C$5.18 or C$9.1 million in total.
On March 4, Vitran announced it had closed the previously announced sale of a division to Legacy Supply Chain for $97 million in cash. Vitran said it would use some of the proceeds to reduce its outstanding debt.
Last week, Vitran stock traded between a low of US$6.11 and a high of US$6.45 on Nasdaq.
TransForce Inc. offers courier and trucking services, including specialized services to the energy sector and waste management to customers across Canada and the United States.
Over the past year, Vitran shares have been underperforming Transforce’s stock. Vitran’s shares are down about 20 per cent while TransForce’s are up about 20 per cent compared with their year-earlier prices.