Student Transportation Inc (NASDAQ:STB) announced recently that it’s in the process of signing a definitive agreement with a group of investors led by Caisse de dépôt et placement du Québec (CDPQ) and Ullico Inc., to acquire the company’s outstanding common shares. The Scotiabank is selected to be the financial advisor of the Special Committee and it’s expected to provide fairness opinion on both sides while Goodmans LLP will the role of legal counsel to the group. The transaction is expected to close before the end of the second quarter of 2018
Rohit Syal, Head of Acquisition at Ullico also stated that the firm is impressed to work with CDPQ and it will give its support as required. The agreement is subject to the terms of conditions required for closure of the transaction, which include the approvals of the pending court orders of the Arrangement and approval of the votes of the common shares by the special committee, and an approval from the Canadian Competition Act and US HSR Act.
The Board of Directors of Student Transportation unanimously approved the agreement following a series of consultation with both financial and legal advisors. The company has been an industry leader in provision of school transportation, safety, and fleet services since 1997. The company has over 13,500 vehicles and serves customers across the US and Canada.
According to George Rossi, Chairman of the Special Committee of the company, the transaction is basically in the best interests of the company and its shareholders. It brings a compelling opportunity for the investors to acquire the venture at an attractive and fair price. The CDPQ has been the largest shareholder of the Company for more that 16years and will ensure that the firm continues to be market leader in student transportation services across the North America.
In case the transaction would not close due to particular circumstances, the Student Transportation would pay a termination payment of $28.4 million to the potential purchaser group.