Transcontinental Makes Bid for PLM
MONTREAL—Transcontinental Inc. is bidding to take control of Toronto-based PLM Group. It has made a takeover bid of C$3.50 per share for PLM’s 29.5 million outstanding shares, with a total enterprise value, including debt, of $130 million.
Barry Pike, founder, chairman and CEO of PLM, and Pike Holdings (a holding company he controls) have signed a hard lock-up agreement to tender their shares, which account for 51.2 percent of the outstanding shares. On the day the deal was announced, the offer represented a 25 percent premium over PLM’s trading price on the Toronto Stock Exchange from the previous day.
PLM Group posted earnings of C$126 million in 2006. The deal is expected to close in October.
“PLM is regarded highly by businesses, marketing firms and advertising agencies in Canada,” noted Luc Desjardins, president and CEO of Transcontinental, in a release.