(January 17 – 10:30 ET) – Equisure Financial Network Inc. intends to make an offer through a wholly-owned subsidiary to acquire all outstanding shares of Canada Brokerlink Inc., it announced today in a prepared statement. The purchase price is $1.02 per share payable in cash. Equisure expects to make the formal offer to Brokerlink shareholders on, or before, January 19, 2000. As at September 30, 1999 Brokerlink had approximately 35.4 million shares outstanding.
Brokerlink is a publicly traded consolidator of independent property and casualty insurance brokerages and an operator of insurance brokerage firms through which a variety of insurance products are distributed. Brokerlink also provides operational services to independent insurance brokers
On December 15, 1999 Equisure says it advised Brokerlink in writing that it was considering making a public takeover bid for the shares of Brokerlink and by letter dated January 6, 2000 Equisure formally requested a shareholder’s list. After the close of business on Friday, says the Equisure statement, Brokerlink announced that its board of directors had adopted a shareholders’ rights plan.
As a result of the adoption of the shareholder’s rights plan by the board of directors of Brokerlink, says Equisure, it’s obligation to take up and pay for the shares of Brokerlink will be conditional on any rights issued under the shareholders’ rights plan being redeemed or the shareholder’s rights plan being waived, cease traded by applicable securities regulation or otherwise rendered inapplicable.
Equisure also says it’s obligation to take up and pay for the shares of Brokerlink will also be subject to certain other conditions, including there being validly deposited under the offer and not properly withdrawn common shares of Brokerlink representing, together with the Brokerlink shares held by Equisure, at least 66 2/3 % of the outstanding Brokerlink shares.