Vancouver merchant bank Skana Capital Corp. (TSX-V:SKN) plans to acquire Kansas-based Bus and Coach International (BCI) in an all-share deal worth approximately $13.3 million.
Under the deal, Skana will issue roughly 51.2 million shares in exchange for 100% ownership of BCI, which designs, manufactures, sells and services its own line of transit buses and motor coaches.
Since 2003, BCI has focused on developing and selling its Falcon 45 full-size motor coach and has expanded to include offices in Southern California, Las Vegas, Nevada, and Orlando, Florida.
The deal will increase the number of Skana shares to 103 million and give privately held BCI a 49.5% stake in Skana.
When the deal is finalized, BCI will be entitled to occupy two seats on Skana's board. Phllip Oldridge, who has a controlling share in BCI's ownership, and David Senior, chairman and CEO of private equity firm GY General Holdings LLC, which owns 40% of BCI, have been nominated to fill those positions.
The deal remains subject to closing conditions, including execution of a definitive agreement, completion of satisfactory due diligence by both parties and receipt of all required regulatory and corporate approvals.
Skana's share had been halted since May 1. It's 52-week high: $0.85; 52-week low: $0.11