(Reuters) – Canadian call center operator TigerTel Communications Inc (TTL.V) said it signed a letter of intent to be taken private by 7212747 Canada Inc (SwiftCo), controlled by TigerTel’s chief executive and former chairman.
If the deal is materialized, TigerTel shareholders will get 25 Canadian cents per share, a premium of about 30 percent based on TigerTel stock’s closing price of 19 Canadian cents on July 17 on the Vancouver Stock Exchange.
The proposed transaction is valued at about C$8 million ($7.4 million) based on the number of shares outstanding as of Jan. 31.
SwiftCo is controlled by TigerTel’s Chief Executive Douglas Swift and its former Chairman Donald Swift. They own about 53.43 percent stake in TigerTel, it said.
Some members of TigerTel’s management may also transfer their shares of TigerTel into SwiftCo prior to the closing of the transaction, the company said.
The companies expect a definitive agreement by Aug. 14 and the deal is expected to close by Oct. 31, TigerTel said. ($1=1.084 Canadian Dollar) (Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier)