Vitran Corp. Receives Non-Binding Acquisition Proposal, LOI From TransForce

(RTTNews) - Vitran Corporation Inc. (VTNC) announced that it has received an unsolicited, non-binding proposal and letter of intent or LOI after the close of business on September 25, 2013, from TransForce Inc. (TFI), pursuant to which TransForce proposes to acquire all of the issued and outstanding common shares of Vitran not already owned by TransForce at a price of USD$4.50 per share in cash.

TransForce currently controls 9.51% of the outstanding common shares of Vitran. The closing price of Vitran's common shares as quoted on NASDAQ on September 25, 2013, was US$4.72.

Vitran noted that its board of directors is currently considering the Proposal, in accordance with the exercise of its fiduciary duties, with the assistance of Stephens Inc., its financial advisor, and McMillan LLP, its legal advisor, and intends to pursue a course of action that the board of directors of Vitran believes is in the best interest of Vitran and its stakeholders.

The company said the Proposal provides that TransForce's willingness to proceed with the potential acquisition is subject to, among other things, confirmatory due diligence regarding the divestiture by Vitran of its U.S. LTL business, as announced by Vitran on September 23, 2013, and negotiation of terms and conditions of a mutually acceptable definitive agreement.

Vitran stated that its management and board of directors are focused on completing the sale of Vitran's U.S. LTL business on or before October 7, 2013.