Auto fuel-storage producer agrees to $5M takeover offer from Luxfer Holdings
Dynetek Industries Ltd. has struggled recently, saying it was looking in strategic options.
CALGARY: Dynetek Industries Ltd. says it has agreed to be taken over by a subsidiary of Luxfer Holdings PLC for about $5 million, plus the assumption of debt.
The Calgary-based maker of fuel-storage systems for low- and zero-emission vehicles said it has an agreement with Luxfer Canada Ltd., which has offered 24 cents per Dynetek share.
That represents a 60% premium to the closing price of its shares Monday.
Dynetek’s board of directors unanimously recommends the offer to shareholders.
The deal includes a termination fee of $500,000 that Dynetek must pay if the deal isn’t completed.
The bid is subject to approval from 66% of shareholders and by Alberta regulators.
A shareholder meeting is slated for September.
In May, the TSX placed the company’s shares under review due to the low market value of its listed shares.
At the time, Dynetek’s stock was hovering around 11 cents Toronto’s main board, meaning the company’s almost 2.1 million shares had a market capitalization of just $2.3 million.
Dynetek said it was looking into strategic options, including the potential sale of the company or a combination with a third party.
Its shares closed at 15 cents Tuesday on the Toronto Stock Exchange.