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Brazilian company buys nearly 20 per cent stake in New Flyer Industries
WINNIPEG – New Flyer Industries Inc. (TSX:NFI) has signed a deal that will see Brazilian company Marcopolo SA buy a nearly 20 per cent stake in the transit bus manufacturer for $116 million.
Under the deal, Marcopolo will pay $10.50 per share for nearly 11.1 million shares in New Flyer, a roughly 19.99 per cent stake.
The two companies also signed an agreement to explore opportunities to co-operate on engineering, technical, purchasing and operational matters.
Marcopolo is one of the world’s largest bus manufacturers. New Flyer, a bus builder with operations in Canada and the United States, says it plans to use the Marcopolo investment to support its growth and diversification.
The investment allows Marcopolo to nominate a member to the New Flyer board as long as it still holds a 10 per cent stake and grants Marcopolo rights to maintain its interest in New Flyer.
Shares in New Flyer, which announced the deal after the close of markets, were down five cents at $9.40 on the Toronto Stock Exchange.
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