Toromont Increases Their Takeover Offer for Enerflex to $668M
Toromont expressed a strong desire to finally acquire Enerflex by significantly increasing their takeover offer to the amount of $668 million but gave a deadline which would at least be until January 20.
Toromont Industries Ltd. made a recent announcement just last Wednesday that they are extending their takeover offer for Enerflex Systems Income Fund for the amount of $668 million until January 20.
Company CEO and chairman Robert Ogilvie said that they are “very pleased” to advance their offer to this point because they know that this will eventually be for their own advantage. Toromont Industries is now encouraging the unit holders of Enerflex Systems to act upon this offer so that they could also get the benefits that go along with that.
This means that Toromont Industries is offering at least $14.25 in cash per unit or 0.5382 of Enerflex Systems. The bid by Toromont was announced October 16 and now the offer is at a 42 per cent premium for Enerflex units. This represents an increase because previously, Toromont’s offer was only at $13.50 in cash per unit or 0.5098.
Just a month ago, the board of Enerflex Systems also motivated their unitholders to accept the offer because it was something that would really be for their advantage because there are few offers that could be as huge as that.
Although Enerflex Systems already have 2,300 employees, they still declined the previous offer by Toromont believing that it wasn’t sufficient and wasn’t commensurate to the total value and that the contract had a few questionable details on it.
In reality, Toromont Industries already has two businesses composing of an operation of Caterpillar heavy equipment and also a compression group that focuses on designing, engineering, fabricating and installing systems for compression.
On the other hand, Enerflex focuses more on supplying compression, processing and producing power generation equipment specifically for oil and gas industry.
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