Global cooling: Avion Group of Iceland bids $574M for Atlas Cold Storage: Knowledge Driven Revolution

TORONTO (CP) - Atlas Cold Storage Income Trust (TSX:FZR.UN) was one of the coolest companies on the Toronto stock exchange Thursday, jumping more than 21 per cent, after an Icelandic investment group said it would make a $574 million acquisition offer.

By close on the TSX, Atlas shares gained $1.33 to $7.60, or 21.2 per cent.

Avion Group (ICEX:AVION), which specializes in air, land and sea transportation businesses, said it plans to offer $7 a unit for Atlas, a company that ran into accounting troubles two years ago and was forced to streamline operations and cut payments to its investors.

In a somewhat chilly response, John Mastrella, vice-president of finance, said Atlas's board of trustees has discussed the unsolicited proposal but is awaiting a formal offer.

Until then, "it's going to be business as usual for Atlas, so we're going to continue servicing customers and continue with our course of actions that we've always said we were going to do," Mastrella said.

The income trust, through operating arm Atlas Cold Storage, is the second-largest freezer warehouse company in North America with 53 sites in the U.S. and Canada.

Read the full article here

Article Continued...

The company resumed monthly payments to unitholders at 2.75 cents a unit in April. That was the first payout since early 2004, after a financial and accounting meltdown dropped the trust's unit price from $13 to under $9 in September 2003 - and on downward to a low of $4.45 in late 2004.

"We think this is a compelling offer that gives unitholders of Atlas a chance to realize an attractive valuation for the units." Magnus Thorsteinsson, executive chairman of Avion Group, said in a conference call.

Avion's offer will be made through Eimskip Atlas Canada Inc., a subsidiary of Avion Group's logistics subsidiary, Eimskipafelag Islands EHF, which supplies temperature-controlled transportation and logistics services.

Thorsteinsson said in a telephone interview that Avion "will certainly not overpay" for the deal because "several" other North American acquisitions are available if Atlas falls through. He declined to name any potential candidates.

"This is a very tough business, the cold storage business, and the margins are wafer-thin," he added.

Atlas would be operated as a subsidiary of Eimskip, which has one of the largest cold storage distribution networks in Europe at over 40 sites. The combined operations would create a network of more than 90 temperature-controlled facilities around the world.

Eimskip recently acquired cold-storage operations in the Netherlands and Britain.

When asked how Avion plans to improve Atlas's performance if the acquisition comes through, Thorsteinsson said it is "too early to elaborate" on possible ideas.

Avion Group already owns about 9.5 per cent of Atlas's outstanding units and has a lockup agreement with KingStreet Real Estate Growth, owner of 4.4 per cent.

Broken Link? If the link to the original article is broken or has been altered you can view the article by clicking the "Expand/Collapse" button below.

Read Today's Knowledge Driven News
HOME V for Vendetta - R for Reality Canadian Bird Flu Pandemic Looming ? Shill of the Week: Stephan Harper Aspartame: The Sweetest Killer Chicken Little Terrorist of the Week: Creating Fake Terrorists Shill of the Week: Paul Martin The Number 1 Reason YOU became a Slave	Global cooling: Avion Group of Iceland bids $574M for Atlas Cold Storage DAVID FRIEND - CP August 04, 2006 TORONTO (CP) - Atlas Cold Storage Income Trust (TSX:FZR.UN) was one of the coolest companies on the Toronto stock exchange Thursday, jumping more than 21 per cent, after an Icelandic investment group said it would make a $574 million acquisition offer. By close on the TSX, Atlas shares gained $1.33 to $7.60, or 21.2 per cent. Avion Group (ICEX:AVION), which specializes in air, land and sea transportation businesses, said it plans to offer $7 a unit for Atlas, a company that ran into accounting troubles two years ago and was forced to streamline operations and cut payments to its investors. In a somewhat chilly response, John Mastrella, vice-president of finance, said Atlas's board of trustees has discussed the unsolicited proposal but is awaiting a formal offer. Until then, "it's going to be business as usual for Atlas, so we're going to continue servicing customers and continue with our course of actions that we've always said we were going to do," Mastrella said. The income trust, through operating arm Atlas Cold Storage, is the second-largest freezer warehouse company in North America with 53 sites in the U.S. and Canada. Read the full article here Article Continued... The company resumed monthly payments to unitholders at 2.75 cents a unit in April. That was the first payout since early 2004, after a financial and accounting meltdown dropped the trust's unit price from $13 to under $9 in September 2003 - and on downward to a low of $4.45 in late 2004. "We think this is a compelling offer that gives unitholders of Atlas a chance to realize an attractive valuation for the units." Magnus Thorsteinsson, executive chairman of Avion Group, said in a conference call. Avion's offer will be made through Eimskip Atlas Canada Inc., a subsidiary of Avion Group's logistics subsidiary, Eimskipafelag Islands EHF, which supplies temperature-controlled transportation and logistics services. Thorsteinsson said in a telephone interview that Avion "will certainly not overpay" for the deal because "several" other North American acquisitions are available if Atlas falls through. He declined to name any potential candidates. "This is a very tough business, the cold storage business, and the margins are wafer-thin," he added. Atlas would be operated as a subsidiary of Eimskip, which has one of the largest cold storage distribution networks in Europe at over 40 sites. The combined operations would create a network of more than 90 temperature-controlled facilities around the world. Eimskip recently acquired cold-storage operations in the Netherlands and Britain. When asked how Avion plans to improve Atlas's performance if the acquisition comes through, Thorsteinsson said it is "too early to elaborate" on possible ideas. Avion Group already owns about 9.5 per cent of Atlas's outstanding units and has a lockup agreement with KingStreet Real Estate Growth, owner of 4.4 per cent. Broken Link? If the link to the original article is broken or has been altered you can view the article by clicking the "Expand/Collapse" button below. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Features Archive
		What Is Wrong With Canada? Recent 9-11 News Suppressed by the Media Aspartame: The Sweetest Killer The Number 1 Reason YOU became a Slave Knowledge Driven Look at Your Favourite Canadian Political Parties
		May June July 2006 25 26 27 28 29 30 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 01 02 03 04 05 Weekly Features 2006 2005 Read Today's Knowledge Driven News
		Counter
Copyright � 2005-6 KnowledgeDrivenRevolution.com