Following the expiry of a previous offer to increase its stake in Nova-Cogesco Resources (TSE), Hughes Lang (VSE) and its subsidiary Orofino Resources (TSE) intend to make a second offer for the cash-rich junior’s shares.
Subject to regulatory approval, the partners will offer to purchase 3.3 million shares of Nova-Cogesco, at 31 cents per share, through the NCG acquisition.
If the bid is successful, the Hughes Lang group will own about 51% of Nova-Cogesco’s outstanding shares. NCG acquired 1.6 million Nova-Cogesco shares through the previous offer, increasing NCG’s and Orofino’s joint stake in the junior to 29.6%.
One obstacle in Hughes Lang’s way is a proposed amalgamation between Deak Resources (TSE) and Nova-Cogesco. A third offer for Nova-Cogesco’s $5-million treasury from Sunport Medical Corp. (T.N.M., Aug. 24/92) has been dropped. Le Fonds de Solidarite, a major shareholder, has agreed to tender its 2.5 million Nova-Cogesco shares to the new NCG bid, subject to the terms of a shareholder’s agreement between FTQ and MSV Resources (ME). Each company has granted the other right of first refusal on their Nova-Cogesco shares. The bid is also subject to a waiver of a requirement for a formal valuation of Nova-Cogesco.
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