Radiant Communications Corp., a Vancouver-based provider of managed network and cloud hosting solutions, has received a second takeover offer from Frontier Networks Inc., a custom data and networking programs company based in Toronto. The bid to take the company private follows one made by Canadian private equity firms Maxam Capital Corp. and PenderFund Capital Management. That deal, which involves shares not already owned by Maxam and Pender, provides consideration to minority shareholders of approximately C$4.5 million and implies an equity value for the company of approximately C$12.9 million.
Frontier Networks Inc. submits bid to acquire Radiant Communications
TORONTO, April 23, 2013 /CNW/ – Frontier Networks Inc., (Frontier) a leading Canadian provider of network communication solutions, today is announcing our proposal to acquire all outstanding shares of Radiant Communications Corp.
Frontier has contacted the Special Committee of the Board of Directors of Radiant (the “Special Committee”) and have provided our view that the current Arrangement Agreement dated March 8, 2013 is not superior to our own bid at $1.00 per share which represents a significant premium of 17.65% to the current offer at $0.85.
Notice of our proposal has been submitted to Nathan Daniels of Morgan, Daniels and Slager, the acting counsel to the Special committee.
According to Luigi Calabrese, President of Frontier, a meeting of the shareholders is scheduled for Wednesday April 24th to vote on a plan which, if approved by a majority, will result in shareholders being paid out at $0.85 per share and the company going private. In our opinion, this is NOT in the best interest of the minority shareholders who can get a much better deal with our own proposal.
About Frontier Networks Inc.
Frontier Networks Inc. is headquartered in Toronto, Ontario and provides broadband, voice, cloud servers and colocation to Canadian Retail and Multi Site customers who demand world-wide coverage from a ‘new’ network. Our management and operating team is loaded with industry specialists and our network is truly high-speed and adaptive to properly support the requirements of customers who wish to reduce costs substantially by combining their broadband and voice services onto one, lower cost, network. We have the highest density of regional Points of Presence available and offer a 100% coverage policy. Simply put ‘we don’t suck.
SOURCE: Frontier Networks Inc.
For further information:
Contact: Luigi Calabrese, 416-847-5243, firstname.lastname@example.org
Photo courtesy of Shutterstock.