BUSINESS

Bank brokerages buying half of Jolina's stake in TransForce for $148.4 million

08/24/2012 07:22 EDT | Updated 10/24/2012 05:12 EDT
MONTREAL - The Saputo family's Jolina Capital is selling about half of its stake in Montreal-based TransForce Inc. (TSX:TFI) for $148.4 million, leaving Jolina with 8.4 per cent of the parcel delivery company's common stock.

Jolina, which has been the largest shareholder in TransForce, is a holding company controlled by Emanuele (Lino) Saputo, founder of the Montreal-based cheese, dairy and bakery company that bears the family name.

TransForce, which owns many delivery and transportation businesses, operates across North America under names such ac as Canpar, ATS Retail Solutions, Canadian Freightways, and Quik X.

The TransForce shares being sold by Jolina will be purchased for $18.55 each by National Bank Financial Inc. and BMO Nesbitt Burns Inc., for resale through a secondary offering. TransForce won't receive any proceeds from the sale.

TransForce shares closed Thursday before the announcement at $19.03.

Jolina says it has agreed to hold its remaining TransForce common stock, or other securities convertible into common stock, for at least 90 days without the brokers' consent.

The transaction, announced late Thursday after markets closed, is expected to close by Aug. 28.