CAMBRIDGE, Ontario - ATS Corporation (TSX: TSX:ATS) (NYSE: ATS), a leading provider of automation solutions, announced today a bought deal agreement with Mason Capital Management LLC and Scotiabank (TSX:BNS), the sole bookrunner.
Under this agreement, Scotiabank will acquire 3,500,000 common shares from Mason Capital Management at C$46.55 per share, resulting in gross proceeds of approximately C$163 million.
The transaction is scheduled to close on or about April 3, 2024. Additionally, Mason Capital Management has granted Scotiabank an over-allotment option to purchase up to an additional 147,000 shares within 30 days following the closing.
It is important to note that all shares in the offering are being sold by Mason Capital Management, and ATS Corporation will not receive any proceeds from the sale.
Mason Capital Management expressed continued commitment to ATS, highlighting their significant ownership stake and confidence in the company's management and value creation strategies. The selling shareholder has also agreed to a 180-day lock-up period post-closing, with certain exceptions, where they will not sell any additional ATS shares or securities.
The offering of shares will be available in all provinces and territories of Canada, excluding Quebec, through a prospectus supplement to the company's short form base shelf prospectus dated March 27, 2024.
ATS Corporation has also filed a registration statement, including the base shelf prospectus and the prospectus supplement, with the U.S. Securities and Exchange Commission under the multi-jurisdictional disclosure system between Canada and the United States.
Investors are advised to read the base shelf prospectus, the prospectus supplement, and other documents filed by the company for more complete information about ATS and the offering. These documents are accessible for free on SEDAR+ and the SEC's EDGAR system. Copies of the registration statement, the base shelf prospectus, and the prospectus supplement can be obtained from Scotiabank upon request.
ATS Corporation is renowned for its custom automation solutions and services across various industries, including life sciences, transportation, and energy. Founded in 1978, the company employs over 7,000 people and operates in multiple locations globally. The information in this article is based on a press release statement.
InvestingPro Insights
In light of ATS Corporation's recent announcement of a bought deal agreement, investors may find the following insights from InvestingPro useful for assessing the company's current financial health and future prospects.
As of the last twelve months as of Q3 2024, ATS Corporation holds a market capitalization of $3.54 billion USD, with a P/E ratio of 26.5, indicating a relatively high valuation compared to near-term earnings growth.
The company's revenue growth during the same period was robust at 21.33%, reflecting a positive trajectory in the company's financial performance. However, an InvestingPro Tip suggests that 7 analysts have revised their earnings downwards for the upcoming period, which may signal caution for investors expecting continued growth.
Despite recent price volatility, with the stock trading near its 52-week low and experiencing a significant price fall over the last three months, the company's liquid assets exceed its short-term obligations. This financial stability is an important consideration, particularly for investors looking for companies with a solid balance sheet.
For those interested in further insights and tips, InvestingPro offers additional guidance on ATS Corporation, including detailed analyst predictions and real-time data. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an expanded array of InvestingPro Tips that can further inform investment decisions.
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