Canadian marketing company Pareto Corp. has agreed to sell itself to buyout shop Riverside Co. in a $108 million cash deal, Reuters reported. At 2.72 Canadian dollars per share, the deal represents a 3% premium over Pareto’s most recent closing price, Reuters said.
(Reuters) – Pareto Corp, a Canadian shopper marketing company, agreed to sell itself to private equity firm Riverside Co for about C$108 million ($108.7 million) in cash.
The C$2.72 per share offer represents a premium of more than 3 percent to Pareto stock’s close on Friday on the Toronto Stock Exchange.
Pareto said shareholders representing about 72 percent of its outstanding shares have agreed to support the deal.
Some senior management members of Pareto also agreed to buy about 20 percent of Riverside for $13.4 million, it said.
The companies have set termination fees of $3.75 million.
Ogilvy Renault acted as counsel to Pareto, while Riverside was represented by Stikeman Elliott and Kirkland & Ellis. ($1=.9932 Canadian dollar) (Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier)