Under the plan, Bird Construction of Mississauga, Ontario will pay out a combination of $ 30 million in cash and $ 66.5 million of common stock valued at $ 6.32 each.
Bird shares closed Wednesday at $ 6.68, up 14 cents, on the Toronto Stock Exchange. Stuart Olson’s shares lost nearly two-thirds of their value and closed at 32.5 cents, down 56.5 cents.
The bulk of the payment will go to Stuart Olson’s lenders and debentureholders, and only about $ 4 million will go to current Stuart Olson shareholders.
The transaction will be facilitated by Canso Investment Counsel Ltd., which will acquire Bird shares for $ 40 million in cash.