Pollard Banknote Makes Unsolicited Proposal to Acquire INNOVA
Winnipeg-based security printing company Pollard Banknote is a five-facility company with over 1,000 personnel, whose wide range of services includes the production of stamps, stocks, bonds and government documents and, as of the mid-1980s, printing for government lotteries in Canada and the United States.
The company has last week made a $42 million offer to purchase the outstanding common shares of Los Angeles-based company Innova, for cash consideration of $2.10 per share.
Pollard Banknote has made an agreement with another Canadian company – Amaya Inc. – the owner of 40.5% of Innova’s shares and is now scheduled to structure a purchase deal with Innova, who has formed a committee to evaluate the proposal coming from Pollard Banknote.
Amaya Inc. has agreed to vote in favour of, and /or tender all of its shares to a proposed transaction of any form which will see all of 8.2 million shares handed over to Pollard Banknote.
As of this moment, there can be no assurances that the purchase proposal will result in a formal bid, but a deal is expected to be realised without problems, comments Rob Rose, Pollard Banknote’s financial executive.
“The opportunity came about recently and we thought it would be a good fit for our company and a good opportunity for Innova to join us. The lottery business is a fairly small world so we are very familiar with all the players and all the products”, he said.
Through the sale of its INNOVA shares, Amaya has taken the latest step in effort to free up capital as the company attempts to refinance its long-term debt.
In the meantime, former Amaya Inc. CEO David Baazov has announced the sale of 30% of the shares in order to raise cash for potential investment purposes, doing so amid insider trading trial he is in the centre of.