TSX:PIX.UN - Post by User
Post by
Ciaoon Dec 21, 2012 8:27am
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Post# 20760214
Takeover
Takeover Looks like someone appeared to holding the share price down to minimize a premium. I'm surprised management is selling out at this level.
MONTREAL, CANADA and VANCOUVER, CANADA--(Marketwire - Dec. 21, 2012) - Cogeco Cable Inc. ("Cogeco Cable") (TSX:CCA) and PEER 1 Network Enterprises, Inc. ("PEER 1") (TSX:PIX)
- Cogeco Cable to Offer $3.85 in cash consideration per share
- Acquisition increases scale and reach of Cogeco Cable's IT hosting business
- Enhances Cogeco Cable's data centre capabilities in key strategic growth areas including managed hosting, dedicated hosting, cloud services and co-location
- Positions Cogeco Cable to provide an expanded suite of network and hosting services particularly to small and medium sized businesses
- Addition of world class infrastructure including 19 data centres and 21 points-of-presence throughout North America and Europe
- Transaction fully supported by the Board of Directors of PEER 1
- Lock-up agreements representing in aggregate 62% of PEER 1's fully diluted shares outstanding in support of the transaction
- Mailing of Circulars on or about December 24th with an expiry date of on or about January 29, 2013
Cogeco Cable Inc. ("Cogeco Cable") (TSX:CCA) and PEER 1 Network Enterprises, Inc. ("PEER 1") (TSX:PIX) announced today that they have entered into an agreement ("Support Agreement"), pursuant to which Cogeco Cable has agreed to acquire all of the issued and outstanding shares of PEER 1 by way of takeover bid (the "Offer"). PEER 1 shareholders will receive $3.85 in cash per share valuing PEER 1's equity at approximately $526 million on a fully diluted basis and its enterprise value at approximately $635 million. The Offer represents a premium of 32.1% to PEER 1's 20 day volume weighted average share price. Cogeco Cable has entered into lock-up agreements with the board of directors, certain key management, and certain key shareholders of PEER 1 representing in aggregate approximately 62% of the fully diluted shares outstanding to tender their shares to the Offer.