Parrish and Heimbecker has offered to buy Thirdcoast Ltd., which owns port terminals on the Great Lakes and a producer and marketer of dry mustard products.
P & H is already the largest shareholder of Thirdcoast, owning about 28 percent, the company said in a news release.
Also, two of the directors of Thirdcoast, Phil and Alan Heimbecker, are also directors of P & H.
P & H intends to offer $115 in cash per common share. This represents a 53 percent premium to the bid price for Thirdcoast common shares of $75 as of Jan. 31.
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Third Coast holdings include Southpier Terminals, which has port terminals at Goderich and Port Colborne, Ont., and G.S. Dunn, a mustard seed processor and marketer in Hamilton, Ont.
Southpier’s annual report for the year ending March 31 2011, said the company had after tax profits of about $3.9 million or $12.23 per share.
That was down from $4.12 million or $12.87 per share the year before.
The annual report noted that the new P&H grain terminal that opened in Hamilton in 2010 had a significant negative effect on the grain handling volumes and margins of its terminals.
Because of the close links between P&H and Thirdcoast, the unsolicited offer is considered an insider bid under securities legislation, which requires that a formal valuation be prepared before P&H can proceed with its bid, Thirdcoast said in a news release.
