CAM - Canam Groupe

Discussion in 'Canadian Stocks Message Boards' started by kthanx, Aug 25, 2016.

  1. kthanx

    kthanx Member

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    This stock has fallen from $13.50 to $9.25 on a project overrun of potentially ~$32 Million.

    That is almost a few hundred million in lost market cap due to one project overrun.

    As per the last conference call there is over $1.2 Billion in project backlog and this is trading well below book value.

    Insiders have recently scooped up shares - look for this to be in the $11+ range in the next 12 months. (Analyst average target price is $14)
     
  2. kthanx

    kthanx Member

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    Buyout news today.

    I had averaged down to about 8.60$ (though it went to like $6).

    Buyout announced at $12.30 - I will take it.

    Cheers to anyone else who bought last year.
     
  3. kthanx

    kthanx Member

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    AINT-GEORGES, QC, April 27, 2017 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam" or the "Corporation") today announced that it has entered into a definitive agreement pursuant to which members of the Dutil family (collectively, the "Family Group") and American Industrial Partners ("AIP" and collectively with the Family Group, the "Investors") will acquire, directly or indirectly, all of the issued and outstanding common shares of the Corporation (the "Shares"), except for approximately 4.7 million Shares already owned by the Family Group which the Family Group will roll over in connection with the transaction (the "Rollover Shares"), for a price of $12.30 per Share in cash. Caisse de dépôt et placement du Québec ("Caisse") and Fonds de solidarité FTQ ("Fonds"), long time shareholders of Canam, are expected to participate in the transaction as equity investors, including by rolling all or part of their Shares, and as such, Caisse, Fonds and the Family Group could own as much as 40% of equity in the future company.

    Transaction Highlights

    • Shareholders (except for the Family Group with respect to their Rollover Shares) will receive $12.30 per Share in cash, representing a premium of 98.4% to the closing price of the Shares on the TSX on April 26, 2017, the last trading day prior to the date of this announcement.
    • The purchase of 100% of the equity of Canam represents a total enterprise value of approximately $875 million, including the assumption of existing indebtedness.
    • The Board of Directors of Canam (the "Board of Directors"), acting on the unanimous recommendation of the special committee of the Board of Directors comprised solely of independent directors (the "Special Committee"), unanimously approved the transaction and unanimously recommends that shareholders vote in favour of the transaction.
    • Canam will maintain its head office in Québec.
    "The proposed transaction is a win-win for all of Canam's stakeholders," said Marc Dutil, President and Chief Executive Officer of the Corporation. "The transaction provides shareholders with a significant cash premium for their shares, while ensuring the long-term success of the business for its employees, business partners and other stakeholders. AIP, with whom we have worked in the past, will provide expertise to stimulate Canam's competitiveness and growth.

    Marcel Dutil, Chairman of the Board of Directors stated: "Canam is a flagship company in Québec, and AIP recognizes this to be one of Canam's strengths. As such, we and our partners at AIP are maintaining the Corporation's head office in Québec."

    "We are very pleased and privileged to be asked by the Dutil family to be their partners in the take private of Canam," commented Mr. Joel Stanwood, Partner at AIP. "We have worked exceptionally well with the Dutil family on past projects and we look forward to assisting Canam to realize operational value throughout the organization". Mr. Joel Rotroff, also a Partner at AIP commented that "Canam is a great Québec success story and we are excited to work together with the Dutil family to build upon its long standing tradition of excellence. We have a deep respect for Canam's entrepreneurial culture and we will be an active and dedicated partner collaborating with the Dutil family and Canam's talented management team and employees in the execution of an operating agenda aimed at furthering Canam's leadership position in its industry".

    The Special Committee, comprised of Pierre Lortie, Elaine Beaudoin and Sean Finn, all of whom are independent directors of the Corporation, after receiving the fairness opinions of BMO Capital Markets ("BMO") and Deloitte LLP ("Deloitte"), a formal valuation of Deloitte and legal and financial advice, has unanimously recommended that the Board of Directors approve the arrangement agreement and that the Shareholders (other than the Family Group, and Caisse and Fonds should they elect to participate as equity investors) vote in favour of the arrangement resolution at the special meeting of shareholders to be called to approve the transaction (the "Meeting"). The Board of Directors, after receiving the fairness opinions of BMO and Deloitte, the formal valuation of Deloitte, legal and financial advice and the recommendation of the Special Committee, has unanimously (with Marcel Dutil, Marc Dutil and Anne-Marie Dutil Blatchford abstaining from voting) determined that the arrangement resolution is in the best interests of the Corporation and is fair to the Shareholders (other than the Family Group, and Caisse and Fonds should they elect to participate as equity investors) and unanimously (with Marcel Dutil, Marc Dutil and Anne-Marie Dutil Blatchford abstaining from voting) recommends that the Shareholders (other than the Family Group, and Caisse and Fonds should they elect to participate as equity investors) vote in favour of the arrangement resolution.

    In connection with the proposed transaction, each director and senior officer of the Corporation has agreed to support and vote all of such individual's Shares in favour of the arrangement resolution and each member of the Family Group has entered into an irrevocable support and voting agreement pursuant to which it has agreed to support and vote all of its Shares in favour of the arrangement resolution and against any resolution submitted by any Shareholder that is inconsistent therewith. Consequently, shareholders holding approximately 14.0% of the outstanding Shares have agreed to vote their Shares in favour of the transaction. Caisse and Fonds are expected to participate in the transaction as equity investors and, as such, are expected to enter into support and voting agreements pursuant to which they would agree to vote all of their Shares in favour of the arrangement resolution, in which circumstances shareholders holding approximately 27.9% of the outstanding Shares (comprising directors and officers of the Corporation, the Family Group, Caisse and Fonds) would have agreed to vote their Shares in favour of the transaction. The transaction will involve a rollover of all the Shares owned by the Family Group except for 700,114 Shares which will be sold for cash by Marcel Dutil's holding company, Placements CMI Inc. ("Placements CMI") or one of its affiliates. Upon completion of the transaction, AIP will own a majority of the issued and outstanding shares of Canam and control its Board of Directors.

    Fairness Opinion and Formal Valuation

    The Special Committee retained BMO as financial advisor and Deloitte as independent valuator. BMO and Deloitte each provided an opinion that, as at April 26, 2017, subject to the assumptions, limitations and qualifications contained therein, the consideration to be received by the shareholders (other than the Family Group in respect of their Rollover Shares, and Caisse and Fonds should they elect to participate as equity investors) pursuant to the transaction is fair to such shareholders from a financial point of view. Deloitte also provided the Special Committee with a formal valuation that was completed under the supervision of the Special Committee. The formal valuation dated as of April 26, 2017, determined that, as at March 4, 2017, subject to the assumptions, limitations and qualifications contained therein, the fair market value of the Shares ranged from $10.58 to $12.42 per Share. The fairness opinions and formal valuation will be included in the management information circular to be filed and mailed to shareholders in connection with the approval of the transaction at the Meeting.

    Transaction Details

    The transaction will be implemented by way of a statutory plan of arrangement under the Business Corporations Act (Québec) and is subject to court approval and the approval of the shareholders of the Corporation. Implementation of the transaction will be subject to the approval of at least 662/3% of the votes cast by shareholders present in person or represented by proxy at the Meeting and the approval of a simple majority of the votes cast by the Corporation's minority shareholders present in person or represented by proxy at the Meeting, being all the shareholders of the Corporation other than the Family Group and Caisse and Fonds which are expected to participate in the transaction as equity investors, and any of their respective affiliates. Further details regarding the applicable voting requirements will be contained in the management information circular to be filed and mailed to shareholders in connection with the proposed transaction.

    The arrangement agreement provides for a non-solicitation covenant on the part of the Corporation, subject to customary "fiduciary out" provisions. The arrangement agreement also provides the Investors with a right to match. A termination fee of $14 million would be payable by the Corporation to the Investors in certain circumstances, including if the Investors fail to exercise their right to match in the context of a superior proposal supported by the Corporation. The Investors have agreed to pay the Corporation a termination fee of $14 million if the transaction is not completed in certain circumstances. The transaction is subject to customary closing conditions, including receipt of regulatory approval, is not subject to any financing condition and is expected to close no later than September 1, 2017.

    The Corporation intends to mail a management information circular to its shareholders in the coming weeks and to hold the Meeting before June 30, 2017. Additional details regarding the terms and conditions of the transaction as well as the rationale for the recommendations made by the Special Committee and the Board of Directors will be set out in the management information circular to be filed and mailed to shareholders which, together with the arrangement agreement, will be available under Canam profile at www.sedar.com.

    Annual General Meeting

    Canam confirms that its annual general meeting will be held on Friday, April 28, 2017 at 11 a.m. in Saint-Georges (Quebec), as previously announced.
     
  4. TheDude

    TheDude Well-Known Member

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    CAM and LMP both went private today, then you got HCG going under. Crazy how the large cap space is starting to change. Last year I saw around 20 small cap companies go private or get taken over. There's been some sort of sentiment towards delisting from the exchange for many companies, but that just makes the supply/demand of available equities to purchase better for investors holding long term.
     
  5. kthanx

    kthanx Member

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    I am really thinking about increasing my position in VRX - seems to have bottomed.
     

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