U.S. hedge fund manager FrontFour Capital Group LLC and its FrontFour Holdings Inc. B.C. subsidiary have fallen just short of taking over Richmond-based IAT Air Cargo Facilities Income Fund (TSX: ACF.UN). FrontFour confirmed late last week that it owned approximately 44.5% of IAT's units after more than 2.4 million units were tendered to its June 24 takeover offer, which expired August 20.
FrontFour Holdings agreed to buy all 2,415,553 units of IAT Air Cargo fund deposited to its offer. The number of units represented approximately 34.7% of the fund's outstanding units, or 38.4% of the units outstanding that were not already owned by FrontFour and its affiliates.
FrontFour had offered a per-unit price of $7.40 for 2,801,184 units of the fund, which represented a 15.6% premium to the closing per-unit price of $6.40 on August 15. Fund trustees had publicly stated they would be tendering their units to FrontFour's offer.
FrontFour and its affiliates now own 3,098,653 units or approximately 44.5% of IAT's outstanding units. It had been seeking 50% plus 100 units.