TransForce Announces Proposal for Vitran at USD$4.50 per Share
Montreal, Quebec, September 25, 2013 – TransForce Inc. (“TransForce”) (TSX: TFI) (OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced that it has submitted a proposal to the board of directors of Vitran Corporation Inc. (“Vitran”) (Nasdaq:VTNC) (TSX:VTN) to acquire all of the issued and outstanding shares of Vitran not already owned by TransForce at a price of USD$4.50 per share in cash (the “Proposal”).
The Proposal was made in a letter sent today to Vitran’s Chairman of the Board of Directors. TransForce made the Proposal with the objective of entering into negotiations with Vitran’s Board and obtaining its support for the Proposal. The Proposal is conditional upon the sale of the US LTL business announced on September 23, 2013.
An important aspect of the Proposal is that Vitran would remain a standalone business within the TransForce group of companies and TransForce is very keen that the existing management team remain with Vitran going forward to continue to execute their business plan.
TransForce currently controls 9.51% of the outstanding shares of Vitran and is in the process of reviewing its alternatives related to the Proposal, including, if the board of directors of Vitran do not engage in negotiations taking the Proposal directly to shareholders.
A formal offer has not been made to shareholders and TransForce is not legally obligated to engage in any transaction noted above or on any other terms, and no assurance can be given that any transaction will be undertaken.
TransForce has retained National Bank Financial Markets as its financial adviser and Heenan Blaikie LLP as legal adviser.