UPDATE 1-Contrans Group to raise C$50 mln in bought deal

Wed May 12, 2010 8:40am EDT

* To sell 5.2 mln subordinate voting shrs at C$9.60 apiece

* Offer at 4 pct discount to Tuesday's close

May 12 (Reuters) - Contrans Group Inc (CSS.TO), which provides freight transportation services to shippers located in Canada, said it would raise C$50 million ($48.97 million) in a bought deal financing to fund acquisitions and general corporate purposes.

The company said it will sell 5.2 million subordinate voting shares at C$9.60 apiece, a 4 percent discount to their closing price Tuesday, to a syndicate of underwriters co-led by Cormark Securities and RBC Capital Markets.

The underwriters will have an overallotment option to buy up to an additional 781,250 subordinate voting shares at the same offer price, Contrans Group said in a statement.

The offering is currently scheduled to close by June 2.

Shares of the Woodstock, Ontario-based company closed at C$10 Tuesday on the Toronto Stock Exchange.

($1=1.021 Canadian Dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.