TORONTO - Auto parts injection molder and painter Tarxien Corp. might be the quarry in a bidding war sparked by a recent takeover offer by Ventra Group Inc. Tarxien's board of directors advised shareholders last week not to tender their shares until it completed a review of Ventra Group's offer mailed to them Oct. 11.
The Ajax, Ontario, firm's board set up an independent committee to review Ventra's offer. The committee said in an Oct. 21 news release that several other companies expressed an interest in making an offer for Tarxien. These companies were in preliminary discussions with Tarxien and examining confidential information on the firm but had given no firm assurance they would pursue an offer. The Tarxien committee said it would further communicate with shareholders by Oct. 25.
Committee chairman Brian Lawson could not be reached by press time. Ventra Group Chairman Ken Nichols was unavailable to comment on whether his firm might be willing to boost its offer if competing bids appeared.
Plastic and metal auto parts producer Ventra Group of Cambridge, Ontario, announced Sept. 28 its C$38 million (US$28.2 million) offer to buy Tarxien. The deal would create a five-plant plastics automotive parts molding business that did about US$120 million in business last year. Ventra's molding sales were about 60 percent of that total.
Ventra estimated its Tarxien per-share offer of C$8 (US$5.94) in cash and two Ventra common shares represented a 19 percent premium over Tarxien's recent share price. Tarxien President Ralph Zarboni and Rossiter Ventures Corp., a company Zarboni controls, agreed to tender shares representing about 33.5 percent of Tarxien.
Ventra's deal is contingent on 90 percent or more of shares being tendered under its offer. Zarboni and Rossiter Ventures agreed to not tender their Tarxien shares to any other offer for 32 days after Ventra made its offer.