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Posted by
Gold_12th
on Thu Jan 24 00:26:59 2013
edf40wrjww2msgDetailB:detailStr fiogf49gjkf0d New Flyer Industries Inc. announced a deal Wednesday that will see Brazilian company Marcopolo SA buy a nearly 20 per cent stake in the Manitoba-based transit bus manufacturer for $116-million.
Under the deal, Marcopolo will pay $10.50 per share for nearly 11.1 million shares in New Flyer, a roughly 19.99 per cent stake.
The two companies also signed an agreement to explore opportunities to co-operate on engineering, technical, purchasing and operational matters.
Marcopolo is one of the world’s largest bus manufacturers.
New Flyer, with operations in Canada and the United States, says it plans to use the Marcopolo investment to support its growth and diversification.
The share issue price is a 20 per cent premium to the 30-day volume-weighted average trading price for the period ended Jan. 23, New Flyer said.
Under the deal, just over 4.9 million common shares will be issued to Marcopolo upon closing, expected by March 1, for $51.7-million.
The rest of the shares are to be issued to Marcopolo at the same price per share in one tranche over the next 12 months as determined by New Flyer “based on its investment and financing needs and in certain other circumstances.”
“Marcopolo is a world-class company with extensive technology, expertise and experience and we look forward to working with them to take New Flyer to the next level,” president and chief executive officer Paul Soubry said in making the announcement.
“This investment will allow us to be more aggressive in executing our growth, diversification and new product development agenda while giving us timing flexibility in drawing the second portion of the funds to ensure that the additional dividend requirements can be better matched to cash flows generated from the use of those funds.”
Marcopolo CEO Jose Rubens de la Rosa said the investment is in line with Marcopolo’s growth strategy and marks its definitive entry into the U.S. and Canadian markets, “ two of the most sophisticated and advanced in the world.”
The investment allows Marcopolo to nominate a member to the New Flyer board as long as it still holds a 10 per cent stake and grants Marcopolo rights to maintain its interest in New Flyer.
Meanwhile, Marcopolo has agreed to certain restrictions including a requirement to hold the shares it acquires for at least two years and a restriction on acquisition of additional New Flyer securities and certain other actions for a period of at least two years.
Shares in New Flyer, which announced the deal after the close of markets Wednesday, were down 5 cents at $9.40 on the Toronto Stock Exchange on Wednesday.
---http://www.theglobeandmail.com/globe-investor/brazilian-bus-firm-loads-up-stake-in-new-flyer-industries/article7716338/
Marcopolo Makes Strategic Investment in New Flyer
- Marcopolo S.A. ("Marcopolo"), a leading Brazilian company in bus body production, has agreed with New Flyer Industries Inc. ("New Flyer") to make a strategic acquisition of 11,087,834 newly issued common shares ("Shares") of New Flyer on a private placement basis for $10.50 per Share. 4,925,530 Shares will be issued to Marcopolo upon closing expected on or prior to March 1, 2013, with the remainder (6,162,304 Shares) to be issued to Marcopolo at the same price per Share in one tranche over the next 12 months following closing as determined by New Flyer based on its investment and financing needs and in certain other circumstances. Upon completion of the acquisition, Marcopolo will own 19.99% of the then issued and outstanding Shares.
Marcopolo is purchasing the Shares for investment purposes and may increase or decrease its equity investment in New Flyer through market transactions, private agreements, treasury issuances, exercise of options, warrants or other convertible securities or otherwise at any time subject to applicable contractual restrictions and depending on market conditions and any other relevant factors from time to time.
Marcopolo and New Flyer also signed a Memorandum of Understanding to explore opportunities to cooperate on engineering, technical, purchasing and operational matters, with a focus on reducing New Flyer's bus manufacturing and aftermarket part costs and enhancing New Flyer's competitiveness. The companies further agreed to assess Marcopolo's technology and products for possible introduction into the Canadian and US markets through New Flyer as well as New Flyer's technology and products for potential distribution into global markets.
SOURCE Marcopolo S.A.
--- http://www.newswire.ca/en/story/1103597/marcopolo-makes-strategic-investment-in-new-flyer
Marcopolo S.A. to make a C$116 million Strategic Investment in New Flyer
Winnipeg, Manitoba, Canada, January 23, 2013: (TSX:NFI, TSX:NFI.DB.U) New Flyer Industries Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today that Marcopolo S.A. has agreed to make a strategic investment of C$116 million to acquire 11,087,834 newly issued common shares, representing a 19.99% stake in New Flyer. Each common share will be issued at a price of C$10.50 per share, or a 20% premium to the 30 day volume-weighted average trading price of New Flyer’s common shares on the TSX for the period ending January 23, 2013. 4,925,530 common shares will be issued to Marcopolo upon closing expected on or prior to March 1, 2013 for aggregate consideration of C$51.7 million with the remainder of the shares to be issued to Marcopolo at the same price per share in one tranche over the next 12 months following closing as determined by New Flyer based on its investment and financing needs and in certain other circumstances. The investment is subject to customary TSX approval.
Founded in 1949, and headquartered in Caxias do Sul, Brazil, Marcopolo is one of the world’s largest bus builders and is primarily engaged in the manufacturing of buses, bus bodies, and components with a product line covering a wide range of models including: coach, urban, micro-buses, and mini-buses. Marcopolo is listed on the Brazilian stock exchange (BM&F Bovespa: POMO3, POMO4).
With anticipated annual net revenues of approximately US$1.9 billion in 2012, Marcopolo has a market capitalization of approximately US$2.8 billion and employs over 22,000 people around the world. Marcopolo manufactures over 32,000 buses annually - 60% are for the Brazilian market and 40% for international markets. Bus manufacturing is carried out directly by Marcopolo and through various joint ventures with companies like Daimler, Tata Motors, and others in seventeen plants located in Brazil, South Africa, Argentina, Australia, Colombia, Egypt, India and Mexico. Marcopolo also has a factory for bus parts and component fabrication in China. Further information is available on Marcopolo’s web site at www.marcopolo.com.br.
Marcopolo’s most recent investments include: a 75% stake in Volgren, Australia’s largest bus body manufacturer, and a 51% share of Metalsur Carrocerias S.R.L, an Argentine company which specializes in manufacturing intercity bus bodies through a Marcopolo controlled company called Metalpar. Marcopolo also owns minority stakes in the following Brazilian parts suppliers: Spheros (heating/ventilation/air conditioning), WSUL (seating foam), and MVC (plastics).
Marcopolo’s strategic plan has included a stated intent to enter the Canadian and US market and as such it identified New Flyer as an attractive investment given the Company’s leading position in the public transit market, operational excellence, commitment to LEAN practises, and capacity to innovate and grow.
New Flyer plans to use the net proceeds of the Marcopolo investment to continue to support its future growth and diversification initiatives in accordance with the Company’s strategic plan and for general corporate purposes. In May 2012 of a Joint Venture with the UK’s largest bus builder, Alexander Dennis Limited, to introduce a MiDi bus in Canada and the US to both public and private operators. In August 2012 New Flyer completed its conversion from an Income Deposit Security structure to a common share corporation.
The two companies also signed a Memorandum of Understanding to explore opportunities to cooperate on engineering, technical, purchasing and operational matters, with a focus on reducing New Flyer’s bus manufacturing and aftermarket part costs and enhancing New Flyer’s competitiveness. The companies further agreed to assess Marcopolo’s technology and products for possible introduction into the Canadian and US markets through New Flyer as well as New Flyer’s technology and products for potential distribution into global markets.
The investment agreement permits Marcopolo to nominate a member to the Board of Directors of New Flyer (the “Board”) while Marcopolo holds at least 10% of the outstanding common shares of New Flyer and grants Marcopolo pre-emptive rights to purchase additional securities in certain circumstances to maintain its proportionate interest in New Flyer. Marcopolo has agreed to certain disposition and standstill restrictions including a requirement to hold the shares it acquires for a period of at least two years and a restriction on acquisitions of additional New Flyer securities and certain other actions for a period of at least two years. The agreement also provides that if New Flyer in the future enters into an agreement with a third party providing for the acquisition of all of New Flyer’s shares or assets, then Marcopolo will, subject to certain exceptions, agree to vote in favor of and to sell its shares as part of the transaction unless Marcopolo has made an alternative proposal that the Board believes is superior or that the shareholders have determined to accept.
The Honourable Brian Tobin P.C., O.C., Chair of the New Flyer Board of Directors, said “We are thrilled to have such a respected global leader in the industry invested in our company and actively supporting New Flyer’s strategic plan. We were approached by Marcopolo nearly one year ago and both companies have invested considerable time and resources to get to know one another, thereby ensuring that this investment makes sound strategic, economic and cultural sense for each of us”.
Paul Soubry, President and CEO of New Flyer added: “Marcopolo is a world-class company with extensive technology, expertise and experience and we look forward to working with them to take New Flyer to the next level. We were impressed with Marcopolo on so many levels: from product range, to technology and capability, to their commitment to all stakeholders (employees, customers, shareholders, suppliers and their communities in which they operate). This investment will allow us to be more aggressive in executing our growth, diversification and new product development agenda while giving us timing flexibility in drawing the second portion of the funds to ensure that the additional dividend requirements can be better matched to cash flows generated from the use of those funds”.
José Rubens de la Rosa, CEO of Marcopolo, said “The investment is in line with Marcopolo's growth strategy and marks its definitive entry into the U.S. and Canadian markets, two of the most sophisticated and advanced in the world. New Flyer has experience in manufacturing products with high standards in terms of specifications and sophistication and in the development and application of sustainable technologies, such as hybrid vehicles powered by renewable and alternative fuels."
BMO Capital Markets acted as financial advisor to New Flyer on the transaction and Blair Franklin acted as financial advisor to Marcopolo.
A conference call for analysts and interested listeners will be held on Thursday January 24, 2013 at 1:00 p.m. (ET). The call-in number for listeners is 888-231-8191 or 647-427-7450. A live audio feed of the call will also be available at http://www.newswire.ca/en/webcast/detail/1103267/1202307. Management will discuss the Marcopolo Strategic Investment Transaction presentation which will be available on New Flyer’s web site at http://www.newflyer.com/index/events_and_presentations. A replay of the call will be available from 4:00 p.m. (ET) on January 24th until 11:59 p.m. (ET) on January 31st. To access the replay, call toll free 1-855-859-2056 or 416-849-0833 and then enter pass code number 92676348. The replay will also be available on New Flyer’s web site at http://www.newflyer.com/index/events_and_presentations.
---http://www.newflyer.com/index/2013_01_23_investor_announcement
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