U.S. INVESTMENT FUND AGREES TO BUY CONSOLTEX
NEW YORK — Consoltex Group Inc., a Canadian textile company that has been on the block since December, said that a U.S. investment fund has agreed to buy all of the company’s subordinate voting shares, taking the firm private.
The U.S. group, American Industrial Partners, will then hold a 49 percent voting-control stake in the Montreal-based company. Les Gantiers Holding BV, which currently owns all the company’s multiple voting shares, will hold the remaining 51 percent of control.
American Industrial offered to pay $3.79 per share for all 14.9 million outstanding subordinate shares of the company. The U.S. dollar figure is translated from the Canadian dollar at current exchange.
According to a statement issued by Consoltex, Clairvest Group Inc., which holds 7.4 million of the subordinate shares, “has irrevocably agreed to tender its shares to the AIP offer.”
Paul Bamatter, Consoltex chief financial officer, said the deal was expected to close in about 60 days. Bamatter noted that current management will remain in place after the transaction.
“Its purpose is to help us and give us access to new equity and new markets,” he said.
In trading on the Montreal Stock Exchange on Friday, the day the offer was announced, Consoltex shares jumped 98 cents to close at $3.52. On Monday, the stock moved up to $3.56. All figures are in U.S. dollars, translated from the Canadian dollar at current exchange.