Hydrogenics Corp and Stuart Energy Systems Corp (SRNYF) announced today that they have entered into an agreement whereby Hydrogenics has agreed to make a share exchange take-over bid to acquire all of the issued and outstanding common shares of Stuart Energy at an exchange ratio of 0.74 Hydrogenics shares for every one Stuart Energy share. This offer represents an indicative price to Stuart Energy shareholders of approximately Cdn.$4.14 per share based on the November 9, 2004 closing share price on the TSX of Cdn.$5.59 per Hydrogenics’ share. The total transaction value is expected to be approximately Cdn.$155 million (approximately US$129 million). The offer represents a 32% premium based on the 20-day volume weighted average price of the shares of both Stuart Energy and Hydrogenics. [ more ] This is very exciting news and a good sign to see some consolidation in this sector. I like both companies and feel that they will make a great match. Obviously they feel the same since it’s a friendly takeover. Investors are taking a cautious outlook on the deal and HYGS is currently trading down 9% at the open. I currently own HYGS and may take this opportunity to purchase more shares.
