TORONTO - Auto parts supplier Gecamex Technologies Inc. of Leamington, Ontario, has upped the ante for injection molder and painter Tarxien Corp. Gecamex made an all-cash offer worth C$45 million (US$33.5 million) for the Ajax, Ontario, automotive parts firm. It planned to mail its offer Oct. 31, according to Brian Lawson, chairman of the independent committee of Tarxien's board of directors. Lawson said the committee will recommend that shareholders accept the offer.
The committee earlier advised shareholders not to accept a C$38 million (US$28.3 million) offer from Ventra Group Inc. of Cambridge, Ontario. The committee said Oct. 28 that Ventra's offer was judged inadequate by Midland Walwyn Capital Inc. of Toronto, which the committee retained as an independent financial adviser.
Gecamex's offer will expire Nov. 21 and is conditional on it getting at least 90 percent of Tarxien's common shares. Ken Nichols, Ventra Group chairman and chief executive officer, could not be reached for comment on whether his firm will boost its offer. Gecamex officials also were unavailable for comment.
Tarxien's board also stated Oct. 28 that it adopted a shareholders' rights plan to ensure they ``will receive full and fair value for their shares.'' Under the plan, Ventra's previous offer is not a permitted bid.
Gecamex makes automotive sealing systems, injection molded elastomer products, soft interior trim and powertrain parts. It is a unit of Versatech Industries Inc. of Toronto, which makes auto parts packaging systems, molded auto parts and tooling. Gecamex bought an interest in Versatech Canada Ltd. in early 1995.
Gecamex trades on the Toronto Stock Exchange and Versatech is listed on the Nasdaq stock system.
Lawson is a partner in venture capital firm Hees International Bancorp Inc. of Toronto. Hees is affiliated with Consolidated Enfield Corp. of Toronto, which owns less than 5 percent of Tarxien's shares.