INNOVA and Pollard Banknote Commence Friendly Acquisition Process
Canada-based INNOVA Gaming Group Inc. and Pollard Banknote Limited have moved forward with the acquisition process as INNOVA shareholders holding over 49% of the shares commit to supporting the revised offer from Pollard Banknote.
INNOVA and Pollard Banknote Reach Agreement
The two companies have announced this week that the filing and mailing of the notice of variation to Pollard Banknote’s purchase offer have begun and that a notice of change was sent to the INNOVA directors’ circular.
The sent documents are related to the Pollard Banknote’s improved offer of $2.50 in cash per common share has seen the two companies enter the support agreement earlier in June.
The INNOVA Board of Directors was unanimous in a decision to classify the Revised Offer as fair to INNOVA’s shareholders. Following a comprehensive consultation with its financial and legal advisors, INNOVA decided it was in the best interest of the company to support and facilitate the purchase proposal. Part of INNOVA shareholders have already deposited their common shares to Pollard Banknote’s offer and they are required to take no further action in the process.
Fair Offer from Legal Standpoint
Raymond James Ltd., the INNOVA financial advisor, provided a fairness opinion based on the assumptions, limitations and qualifications which suggested Pollard Banknote’s offer should be accepted as a fair one from the legal standpoint.
With purchase process now in motion, the Pollard Banknote’s offer is subject to customary conditions, one of which includes the offer to be constituted at least 66.6% of the outstanding common shares, excluding any shares beneficially owned.
Additionally, The Revised Offer is not subject to any due diligence or financing condition, nor the receipt of any regulatory approvals.
In other news related to INNOVA Gaming Group Inc., the Canadian company also announced that it will release its second quarter financial results on 11 August. INNOVA will not be holding a conference call to discuss the results, as customary.