Titanium Transportation Group is the most recent Canadian junior to go personal

Haywood Capital Markets analyst Gianluca Tucci famous that Titanium Transportation Group (Titanium Transportation Group Inventory Quote, Chart, Information, Analysts, Financials TSX:TTNM) has agreed to a high-probability take-private transaction that delivers quick liquidity at a major premium, prompting Haywood to maneuver its score to “Tender” and withdraw its worth goal.

In a Jan. 15 report, Tucci noticed that Titanium had entered right into a definitive settlement to be acquired by a management-led group and its largest shareholder, Trunkeast Investments, for $2.22 per share in money. The provide represents a 41% premium to the prior shut and a 42% premium to the 20-day VWAP.

Greater than 50% of the voting energy is already dedicated to the transaction, main Haywood to view the deal as extremely prone to shut, with restricted scope for a competing bid.

Tucci stated the transaction supplies a clear exit for shareholders in a inventory that has traditionally confronted liquidity constraints on the TSX, including that the premium probably displays administration’s willingness to pay to take away the prices and regulatory burden related to being a micro-cap public issuer. Whereas the deal stays topic to a majority-of-the-minority vote, Haywood doesn’t count on significant resistance given the valuation.

Tucci stated going personal would give administration higher flexibility to pursue extra aggressive, debt-funded M&A or longer-term infrastructure investments which are harder to execute beneath public-market scrutiny. He characterised the end result as a lovely exit for a well-run however persistently undervalued transportation identify.

Titanium operates a diversified asset-based trucking and logistics platform throughout Canada and the USA, with publicity to meals and beverage, manufactured items, and retail clients. The corporate ranks among the many high 12 Canadian transportation firms by fleet measurement and has pursued a mixture of natural development and selective acquisitions.

Tucci stated Titanium ought to generate about $37.8-million in Adjusted EBITDA on income of roughly $471.0-million in fiscal 2025, bettering to about $42.8-million in Adjusted EBITDA on income of roughly $485.8-million in fiscal 2026.

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Cantech Letter founder and editor Nick Waddell has lived in 5 Canadian provinces and is pleased with his nation’s typically missed contributions to the world of science and expertise. Waddell takes a daily shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications comparable to Canadian Enterprise and Enterprise Insider.