Cosmos Capital to make bid for Cossette by end of week
Cosmos Capital of Montreal announced yesterday that it will make a take-over bid for Cossette at a price of $5.25 per share on or before Oct. 30. The offer is described by Cosmos as a binding, fully-financed, all-cash bid for all issued and outstanding subordinate voting shares of Cossette. The offer is also described as not subject to any financing conditions and not subject to a due diligence condition. According to Cosmos, the price offered represents a premium of approximately 61% over the $3.25 closing price of Cossette shares on July 17, the last trading day before Cosmos proposed its takeover. Cossette's share price closed yesterday at $5.80. Cosmos, along with its affiliates, associates and joint actors, already owns or controls 18.7% of Cossette's outstanding shares. In addition, Cosmos has signed lock-up agreements with Burgundy Asset Management and Beutel, Goodman & Company, which together own or control a further 18.6% of these shares. "The Cosmos offer is a compelling one and represents a full and fair price for Cossette shares, given the company's financial performance and current business risks," said François Duffar, chairman and CEO of Cosmos. "For shareholders, it has the benefit of providing them with the certainty of an immediate cash payment for their shares. The fact that two of Cossette's largest institutional shareholders have agreed to tender their shares in support of the Cosmos offer validates this view." In a release, Cosmos also expressed concern that the board of directors at Cossette has acted in recent months to prevent its shareholders from having the opportunity to respond to the Cosmos proposal.