MONTREAL—Information technology company Hartco Inc. says it has rejected a proposed takeover bid by the company’s founder and CEO.
The Montreal-based concern says it received a letter from Harry Hart and a company under his control confirming plans to offer $18.3 million or $3.40 per share to acquire the 36.8 per cent of shares Hart and his family don’t own.
The intended offer is higher than the $3.25 per share Hart suggested in a February letter. However, Hart refused to negotiate an offer above $3.40.
The company announced in January that it had ended a strategic review without identifying a suitable buyer.
Financial advisers say the company’s fair market value ranges between $3.94 and $5.25 per share. Consequently, Hartco’s independent directors said they wouldn’t recommend that shareholders approve Hart’s offer.
Hartco is the parent company of Metafore Technologies Inc., which designs, supplies, installs and supports information technology solutions for private and public sector organizations across Canada.