CanaDream Corporation (TSX-V: CDN) has entered into a definitive arrangement agreement with Queensland, Australia based Apollo Tourism & Leisure Ltd. (ASX: ATL) and ATL Canada Ltd., an affiliate of Apollo, whereby ATL Canada has agreed to acquire all of the issued and outstanding common shares of CanaDream that are not currently owned by Apollo or its affiliates for approximately CDN $28.4 million or AUS $28 million in cash.
Apollo currently owns approximately 20% of CanaDream.
Under the terms of the arrangement agreement, the Purchaser has agreed to purchase: (i) the CanaDream Shares controlled by Blaine Nicholson, a director of the company, and Brian Gronberg, President & CEO a director of the Company for consideration of $1.68 per share, and (ii) all other outstanding CanaDream shares (other than CanaDream Shares held by an affiliate of Apollo) for consideration of $1.85 per share . Each outstanding option to purchase CanaDream shares will be purchased by the company for a price equal to the difference between the exercise price of such option and $1.85.
The arrangement is anticipated to close in mid-July 2017.
CanaDream has a fleet of approximately 1,000 rental units servicing the Canadian RV rental market.
Apollo is a multi-national, vertically integrated manufacturer, rental fleet operator, wholesaler and retailer of a broad range of RVs in Australia, New Zealand and the USA. Apollo has benefited from a healthy global tourism industry and an ageing population with increasing level of savings, and has formed a growth strategy based on an expansion into the east coast of the USA and development of its new RV sales division in Australia.
photo credit: Apollo