NEW YORK MDC Corp. said it plans to take Maxxcom private through an all-stock buyout of minority shareholders in the advertising holding company, of which MDC already owns 74 percent.
MDC has reached an agreement in principle with an independent committee of Maxxcom’s board established to respond to the bid.
Maxxcom, like MDC, is based in Toronto. The subsidiary has stakes in U.S. operations such as New York’s Margeotes/Fertitta + Partners and Miami-based Crispin Porter + Bogusky.
The value of the offer from MDC (which also markets products including stamps, credit cards and airline tickets) is $1.36 a share or about $18 million. At $1.36 a share, the transaction represents a 41 percent premium to the volume weighted average trading price of Maxxcom common shares on the Toronto Stock Exchange for the 20 days ended June 14, 2003 of 96 cents.
MDC expects to complete the takeover by August. The transaction is subject to the approval of two-thirds of Maxxcom shareholders.
MDC Plans to Take Maxxcom Private
