Cossette Accepts $131.5m Take-Over Bid

In Canada, the Board of marcoms and ad group Cossette has accepted an offer to be acquired by US private equity firm Mill Road for $131.5m in cash.

Cossette provides strategic planning and research services through Nucleus and Impact Research in Canada, Cossette in the US and Miles Calcraft Briginshaw Duffy in the UK.

Its Board has accepted Mill Road Capital's offer of $7.87 per share in cash for all Cossette's shares, which would take Cossette private if the deal goes ahead.

This beats a rival bid of $5.25 per share (c$87.7m) from Cosmos Capital, which already owns a fifth of Cossette's stock. Earlier in the year, Cosmos had offered $4.95 per share for the group.

Cossette's Board asked shareholders to reject the Cosmos offer, stating that it 'significantly undervalues' the company. The group's senior managers, who own 30% of the company, are backing the Mill Road offer.

'We are very pleased with this transaction because it better reflects Cossette's true value and exemplifies our commitment to maximize value for all our shareholders,' commented Cossette's CEO and President, Claude Lessard. 'This transaction is fully supported by the senior management team.'

If shareholders approve the Mill Road offer, it is anticipated that the deal will conclude by the end of the year, when Cossette will continue to be led by Lessard and his current senior management team.

Yesterday Cossette's shares rose 33% and closed at $5.85 on the Toronto Stock Exchange.

Cossette has approximately 1,485 employees, and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.

Web site: www.cossette.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.