Less than two weeks after Vancouver-based Hughes Lang (VSE) withdrew a bid for control of Nova-Cogesco Resources (ME), the Vancouver company has come up with a second offer.
Under the latest proposal, Hughes-Lang and 53% owned Orofino Resources (TSE) are tendering an offer for 4.97 million common shares of Nova-Cogesco at 31 cents a share or about 75% above the recent 17 cents trading level. Open for a period of 21 days, the offer is being made to all Nova-Cogesco shareholders in Canada. In the event that more than 4.97 million shares are tendered, the stock will be taken up on a pro rata basis.
An earlier offer was withdrawn after minority shareholders of Nova-Cogesco complained about Hughes Lang’s proposal to purchase a block of shares held by controlling shareholders MSV Resources (ME) and the Quebec Federation of Labour’s Solidarity Fund. Despite complaints that minority shareholders were not included in the deal, the QSC allowed Hughes Lang to keep a block of shares (representing 13%) acquired from Aur Resources (TSE). If the maximum number of shares is tendered to the latest offer, Hughes Lang and Orofino will own about 51% of the outstanding shares of Nova-Cogesco which currently holds about $5.5 million in cash.
Be the first to comment on "Hughes Lang makes new offer for control of Nova-Cogesco"