July 5 (Renewables Now) - Two of the directors of Carmanah Technologies Corp (TSE:CMH) have entered into an agreement to buy out the Canadian company at CAD 7.35 (USD 5.63/EUR 4.99) per share in cash.
Directors James Meekison and Terry Holland currently hold a combined 32.7% stake in the company and seek to acquire the rest of the shares through CMH Acquisition Corp. Other parties of the agreement are JDM Investment Holdings Inc and TMH Capital Limited Partnership, which act as guarantors.
The agreed price is a premium of 7.5% to Carmanah’s closing share price on May 6, 2019, the day before a non-binding proposal was disclosed.
Carmanah’s CEO John Simmons has agreed to roll over a portion of his shares in the transaction.
Victoria, British Columbia-based Carmanah offers signaling and solar lighting solutions for infrastructure projects, as well as safety and marking systems for offshore wind farms through unit Sabik Offshore. A couple of months back, the company sold its solar power engineering, procurement and construction (EPC) business for USD 2 million (EUR 1.77m) in order to focus on growing its strategic Lighting and Signals businesses.
CEO Simmons commented that this planned transaction will allow the company “to continue its development in a much more efficient and private company structure.”
(CAD 1.0 = USD 0.766/EUR 0.679)
(USD 1.0 = EUR 0.887)