A numbered company controlled by chairman
The arrangement values the company, which says it is the largest farm equipment dealer in
While reporting third-quarter financial results last week, Ganden said Rocky Mountain is focusing on strengthening its balance sheet despite the recent above-average Canadian harvest in view of ongoing uncertainty surrounding the COVID-19 pandemic and trade disputes.
“Canadian industry data indicates the delivery of new units of large horsepower equipment and self-propelled combines remain at historic lows," he said in a news release.
"However, crop reports are encouraging, showing the harvest is essentially complete and ahead of historical averages across our territory, while crop prices are now five to 19 per cent higher than in January 2019.”
The company reported that sales rose 9.2 per cent to
Rocky Mountain says the buyout price represents a 26.8 per cent premium to its closing price on Friday — the stock rose by 25 per cent to
Directors and officers who own or control about 13.6 per cent of the shares have agreed to support the arrangement, it said. The deal requires two-thirds support at a special meeting to be held in December to go forward.
The company says it is allowed to actively negotiate with other potential buyers until
It says the transaction has been endorsed by a special committee of independent directors formed to assess the fair market value of the shares and evaluate the proposal.
This report by
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