TORONTO, Jan. 23, 2013 /CNW/ - Marcopolo S.A. ("Marcopolo"), a leading Brazilian company in bus body production, has agreed with
New Flyer Industries Inc. ("New Flyer") to make a strategic acquisition of 11,087,834 newly issued common
shares ("Shares") of New Flyer on a private placement basis for $10.50 per Share.
4,925,530 Shares will be issued to Marcopolo upon closing expected on
or prior to March 1, 2013, with the remainder (6,162,304 Shares) to be
issued to Marcopolo at the same price per Share in one tranche over the
next 12 months following closing as determined by New Flyer based on
its investment and financing needs and in certain other circumstances.
Upon completion of the acquisition, Marcopolo will own 19.99% of the
then issued and outstanding Shares.
Marcopolo is purchasing the Shares for investment purposes and may
increase or decrease its equity investment in New Flyer through market
transactions, private agreements, treasury issuances, exercise of
options, warrants or other convertible securities or otherwise at any
time subject to applicable contractual restrictions and depending on
market conditions and any other relevant factors from time to time.
Marcopolo and New Flyer also signed a Memorandum of Understanding to
explore opportunities to cooperate on engineering, technical,
purchasing and operational matters, with a focus on reducing New
Flyer's bus manufacturing and aftermarket part costs and enhancing New
Flyer's competitiveness. The companies further agreed to assess
Marcopolo's technology and products for possible introduction into the
Canadian and US markets through New Flyer as well as New Flyer's
technology and products for potential distribution into global markets.
SOURCE: Marcopolo S.A.
For further information:
Marcopolo's address is Marcopolo Street, 280 - Bairro Planalto, Caxias do Sul - RS - Brasil - CEP: 95086-200.