The controlling shareholder of Trailmobile Canada Limited (TCL) has announced that it intends to make a cash offer to purchase all of the outstanding common shares of the company at a price per share of $0.10.
This price represents a premium of 25% to Trailmobile's closing market price of $0.08 on Friday, February 1, 2002 on the Toronto Stock Exchange.
There are currently 56.18 million shares of Trailmobile outstanding of which 1314385 Ontario Limited currently holds approximately 34.7 million shares (61.77%). Ontario Limited is offering to acquire the 21.48 million shares of Trailmobile it does not currently own. Arm's length shareholders controlling 10.4 million shares have agreed to tender their shares—including Howson Tattersall Investment Counsel Limited which exercises control over 5.66 million shares.
Edward Wanandi, chairman and CEO of 1314385 Ontario Limited and Trailmobile in announcing the bid said that the offer is being made to provide liquidity for the minority shareholders. Following completion of the offer, 1314385 Ontario Limited will continue to operate the trailer manufacturing business of Trailmobile Canada at its sole risk.
Trailmobile Canada Limited manufactures dry-freight trailers for commercial trucking customers in Canada and the United States. It is majority owned by Chicago-based Trailmobile Corporation. Trailmobile Canada Limited's head office and manufacturing facility are located in Mississauga, Ontario.