EDMONTON – Raydan Manufacturing Inc. (TSX:RDN) says a numbered Alberta company owned by one of its shareholders has topped a takeover bid the Edmonton-based manufacturer agreed to in late November.
Raydan said Wednesday the numbered company owned by shareholder Bill Kocken has offered just under $2 million in cash, or 12 cents a share, for the company.
An earlier bid Raydan had accepted from Link Suspension of Canada LP and Link Manufacturing Inc. values Raydan at 11 cents a share, but some of that cash would not be paid for a year.
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“After carefully weighing the alternatives, in consultation with our legal and financial advisers, the board of directors has concluded that the (Kocken) offer provides greater shareholder value than Link’s existing offer,” said Ray English, president and CEO of Raydan.
Raydan said Link has the option of matching or topping the new bid.
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Raydan makes suspension and coupling systems for trucks, trailers and heavy equipment, and operates a chassis modification centre.
In its latest fiscal 2012 second quarter, the company reported a wider loss as revenue fell by almost a fifth from the year-earlier period.
Raydan said in late December its net loss for the three months ended Oct. 31 was $382,913, compared with a net loss of $45,138 in the same year-earlier quarter.
Revenue dropped to $2.1 million from $2.5 million.
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