A consortium of buyers have provided sweetheart deal for possession of NYSE-listed Atlas Corporation (ATCO), dad or mum firm of containership leasing firm Seaspan Corporation.
The consortium is made up of David Sokol, Chairman of the Board of Administrators of Atlas Corp., sure associates of Fairfax Monetary Holdings (TSX: FFH and FFH.U), the Washington Household, and Ocean Community Categorical (ONE), the worldwide container transport firm.
They’re providing $14.45 per share in money for all shares they don’t already personal or management, representing a 32.1% and 28.8% premium over the 30-day and 60-day common closing costs of ATCO shares. ATCO shares rose greater than 20% in after hours buying and selling on the information.
The supply was submitted as a non-binding proposal despatched to Atlas’ Board of Administrators on Thursday.
Fairfax, the Washington Household, and David Sokol at present personal or management roughly 68% of the fully-diluted excellent widespread shares of Atlas and would proceed their possession as a part of the consortium. Accordingly, the proposal wouldn’t end in a change in charge of the corporate.
The consortium members have dedicated to completely fund the money element of the proposal, and it’s contemplated that every one of Atlas’ most popular shares would stay excellent following the proposed transaction.
“The Consortium believes the proposed transaction will present Atlas’s widespread shareholders with instant liquidity and certainty of worth at a major premium to the present share worth, whereas permitting Atlas to give attention to the long run with out the emphasis on short-term outcomes and offering Atlas with a great strategic companion to help its future progress,” mentioned Sokol.
Along with Seaspan Corporation, Atlas Corporation’s portfolio additionally contains APR Power, which gives cell energy vegetation to underserved markets and industries. Seaspan’s operational fleet consists of 131 containerships one other 70 beneath building, representing over 1.95M TEU on a fully-delivered foundation.
Underneath the proposal, Atlas’s board of administrators would type a particular committee of unbiased administrators to evaluation and settle for or reject the proposal andconsider and negotiate the phrases. The particular committee may also choose and retain unbiased authorized and monetary advisors to help in its evaluation.
The proposal will probably be topic to a non-waivable situation requiring approval by holders of a majority of Atlas widespread shares not owned or managed by the consortium, senior administration or their associates.
In its proposal letter, the consortium knowledgeable the Atlas board that consortium members who’re at present shareholders have an interest solely in buying the remaining widespread shares, and have little interest in promoting any of the shares, nor would they anticipate to vote in favor of any different sale, merger or comparable transaction of their capability as shareholders.
If the particular committee doesn’t approve, or different widespread shareholders of Atlas don’t approve, the proposed transaction, Fairfax, the Washington Household, and David Sokol intend to proceed as long-term shareholders of Atlas.