Pension fund manager British Columbia Investment Management Corp. (bcIMC) announced it had tendered a $790 million bid for Calgary-based Parkbridge Lifestyle Communities Inc. (TSX:PRK) Monday morning.
The Victoria-based company said it would buy Parkbridge for $7.30 per share, representing a 35% premium to Parkbridge’s average trading price for 30 days ending October 1. bcIMC said little about the investment in a release.
Parkbridge is the nation’s largest owner and operator of land lease communities, which include cottage and RV resorts as well as residential communities.
bcIMC is one of Canada’s largest institutional fund managers. It has a global investment portfolio that exceeds $80 billion and its investment activities help finance retirement benefits for more than 440,000 British Columbians. Nearly 80% of bcIMC’s clients are pension plans, according to its website.
The deal helped Parkbridge’s shares soar 30% to $7.30 in midday trades Monday.
The Calgary firm’s board of directors unanimously approved the deal. Under the arrangement agreement Parkbridge has agreed not to solicit or initiate any discussions in pursuit of another acquisition proposal.
The takeover remains subject to approval from Parkbridge shareholders, as well as court and regulatory approvals.
The deal is not expected to close before January 4, 2011; meaning Parkbridge shareholders are expected to receive their next quarterly dividend.