Founding family of I.T. firm Hartco Inc. launches $18M privatization bid
The family has an agreement of support from two institutional majority shareholders
MONTREAL—The founding family of information technology company Hartco Inc. launched an $18.3-million bid April 23 to take the company private by acquiring the nearly 37 per cent of the shares owned by others.
A numbered company indirectly owned by executive chairman and CEO Harry Hart and members of his immediate family is offering $3.40 in cash per share, which values the company at $45 million.
The offer, representing a 38.8 per cent premium from before Hart sent a letter of intent to the company’s board on Feb. 19, expires May 28.
The Hart family has 8.36 million shares or 63.22 per cent of the outstanding stock. It has also entered into an agreement of support from two institutional shareholders that hold slightly more than 68 per cent of shares not controlled by the family.
A special committee of Montreal-based Hartco said last month it wouldn’t recommend that shareholders accept the offer, saying the fair market value of the shares ranged between $3.94 and $5.25.
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.