A groundhog is shown amongst tombstones at Notre-Dame-des-Neiges cemetery in Montreal, Friday, Sept. 4, 2020. THE CANADIAN PRESS/Graham Hughes
TORONTO – Shares of Park Lawn Corp. soared nearly 60 per cent in early trading after the company announced a plan to be taken private in an agreement valued at about $1.2 billion, including debt.
Under the proposal, Viridian Acquisition Inc., an affiliate of Homesteaders Life Co. and Birch Hill Equity Partners Management Inc., will pay $26.50 per share for Park Lawn.
Shares in the funeral home and cemetery company were up $9.57 at $25.92 in early trading on the Toronto Stock Exchange on Tuesday.
The agreement, which has been unanimously recommended by the Park Lawn board of directors, requires approval by a two”thirds majority vote by shareholders.
John Nies, chair of Park Lawn’s special committee which reviewed the proposal, said the transaction is in the best interests of Park Lawn and fair to the company’s shareholders.
Park Lawn owns and operates cemeteries, crematoria, funeral homes, chapels and event centres in Canada and the United States.
This report by The Canadian Press was first published June 4, 2024.
Companies in this story: (TSX:PLC)
