- Avcorp Industries Inc. (TSX:AVP) (OTC:AVPFF) has entered into a definitive arrangement agreement to be acquired by Latécoère S.A. for C$0.11/share in cash.
- The deal price represents a 16% premium to the closing price of C$0.095 on May 4, 2022, and a 28% premium to the weighted average trading price for the 60 trading days.
- The transaction will be implemented by way of a court-approved plan of arrangement.
- Latécoère will pay ~C$41 million for the Avcorp shares. Including net debt and other lease liabilities, the total transaction value amounts to ~C$139 million.
- Avcorp board has approved the arrangement agreement and recommends shareholders vote their shares in favor of the deal.
- Avcorp directors, executive officers, and certain other shareholders, who hold an aggregate 71.9% stake, have entered into voting and support agreements with Latécoère.
- Avcorp has also agreed to pay a termination fee of C$4 million in case of occurrence of such events.
- Price Action: AVP shares are trading higher by 10.53% at C$0.11 on TSX, and AVPFF is higher by 17.88% at $0.09 on the last check Thursday.
