MONTREAL â€” Investment firm Letko, Brosseau and Associates Inc. says it plans to vote against a plan to take Dorel Industries Inc. private.
The money manager says it holds 12.6 per cent of Dorel’s outstanding class-B subordinate shares. A shareholder meeting to vote on the offer is set for Jan. 12.
Letko Brosseau says it is a long-term shareholder of Dorel and that it has confidence in the future of the company.
Under a deal announced in November, a group led by an affiliate of Cerberus Capital Management LP has offered to buy Dorel for $14.50 per share in cash, except for shares owned by members of the Schwartz family, including Dorel’s chief executive officer.
The transaction needs approval by two-thirds of the votes cast, and more than 50 per cent of the votes cast by non-family shareholders.
Dorel makes a variety of consumer goods such as Cosco and Safety 1st child car seats, Cannondale and Schwinn bicycles, and home furniture under brands such as Dorel Living and DHP.Â
This report by The Canadian Press was first published Dec. 23, 2020.
Companies in this story: (TSX: DII.B, TSX:DII.A)
The Canadian Press