Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cineplex Inc. (CGX-T), Canada’s largest cinema chain, has reached an agreement to be acquired by UK-based movie theatre owner Cineworld Group plc.
The proposed deal announced early Monday morning is worth $2.8-billion in cash and assumption of net debt. Cineworld has offered $34 per share for the Toronto-based company’s outstanding common shares. At market close on Friday, Cineplex stock was trading at $24.01. Cineworld’s offer represents a 39-per-cent premium on Cineplex’s average share price in the 30 days leading up to Dec. 13.
The deal is subject to approval by shareholders of both companies, and is expected to close in the first half of 2020.
The agreement also provides for a seven-week “go-shop period,” expiring on Feb. 2, 2020, which allows Cineplex to entertain other offers.
-Susan Krashinsky Robertson
Equinox Gold Corp (EQX-T) will buy rival Leagold Mining Corp. (LMC-T) for $769.3-million, the company said on Monday, the latest addition to the increasing number of mergers in the gold mining industry.
Equinox said Leagold shareholders will receive an at-market consideration of $2.70 per share as part of the deal, the same as Leagold’s closing price on Friday.
Ballard Power Systems (BLDP-Q; BLDP-T) announced receipt of a purchase order from Weichai Ballard Hy-Energy Technologies Co., Ltd. for Membrane Electrode Assemblies (MEAs) valued at $19.2-million, to be delivered in 2020 under a long-term MEA supply agreement.
Weichai Power Co., Ltd. holds a 51-per-cent ownership position and Ballard holds a 49 per-cent ownership position in the Weichai-Ballard JV.
Points International Ltd. (PTS-T) announced a long-term renewal of its contract with Southwest Airlines (LUV-N) beginning January 1. "Through a single integration with Points’ Loyalty Commerce Platform, Southwest Airlines will continue to leverage a full suite of loyalty solutions designed to drive both increased revenue and member engagement," the company stated.
Fairfax India Holdings Corp. (FIH-U-T) announced it’s selling an 11.5-per-cent interest in Anchorage Infrastructure Investments Holdings Limited for about US$134-million through a private investment agreement.
Fairfax India said it will record investment gains of approximately US$506-million as a result of the transaction.
Anchorage is a subsidiary of Fairfax India and its "flagship company for investing in companies, businesses and opportunities in the airport sector in India," the company stated. Anchorage is also the company's platform for bidding on airport privatization projects in India.
Fairfax India owns a 54-per-cent interest in Bangalore International Airport (BIAL). As part of the transaction, Fairfax India said it will restructure its interest in BIAL so that a portion of the interest will be held through Anchorage.
Dundee Precious Metals Inc. (DPM-T) announced that president and CEO Rick Howes will be stepping down at the annual general meeting of shareholders on May 7 and will not stand for re-election as director. The company said David Rae, its chief operating officer since 2014, has been appointed as a director effective January 1 and will assume the role of president and CEO on May 7.
Hexo Corp. (HEXO-T; HEXO-N) reported revenue for its first quarter ended Oct. 31 was $14.5-million compared to $5.7-million a year earlier and below expectations of $15.8-million.
The company said its loss from operations was $58.5-million compared to a loss of $14.7-million for the comparable quarter year-over-year. "The increase in loss year over year is attributable to the larger magnitude of the company’s operations, the expanding scale production and sales in the period, and an impairment loss," the company stated.
The Ontario Securities Commission ruled on Friday that Hudson’s Bay Co. (HBC-T) must delay a shareholder meeting on its executive chairman’s $1.1-billion privatization offer even as early voting appeared to show that the plan failed to win enough support.
The meeting on the $10.30-a-share offer from chairman Richard Baker and his allies was set for Dec. 17, but minority shareholders submitted enough proxies against the contentious proposal by Friday to vote it down, according to one report. Reuters, quoting unnamed sources, reported that the Baker group, which controls 57 per cent of HBC stock, failed to persuade the required majority of the minority holders to tender the bid.
The results filtered out just before the OSC ruled at a hearing late Friday that HBC must delay the meeting until after the company files an amendment to its formal bid documents. Those amended documents must include additional information that was contained in a Dec. 6 news release.
-Rachelle Younglai and Jeffrey Jones
Slate Retail REIT (SRT-UN-T) announced the appointments of Andrew Agatep as the REIT’s chief financial officer and David Dunn as its chief operating officer, effective today.
Mr. Agatep joined Slate Retail REIT in 2015 and most recently served as a vice president and controller. He replaces Robert Armstrong, who the company said will continue as a member of the senior leadership team of Slate Asset Management.
Mr. Dunn also joined Slate Retail REIT in 2015 and most recently served as vice president, asset management, the company stated.
Slate Office REIT (SOT-UN-T) announced the appointment of Michael Sheehan as its chief financial officer, effective today. He most recently served as director and controller of the REIT and replaces Robert Armstrong, who will continue as a member of the senior leadership team of Slate Asset Management, the REIT stated.