Enerflex Systems Income Fund told its unitholders to reject the buyout offer from Toromont Industries Ltd as it undervalues the company, and said it received expressions of interest from third parties.
We believe the Toromont offer does not offer full value for Enerflex or its extensive international growth prospects, Chairman P. John Aldred said in a statement.
In November, Toromont formalized a hostile takeover offer for Enerflex, after its talks with the supplier of equipment for the oil and gas industry failed to bear fruit.
Toromont made a C$597 million ($569.7 million) offer to acquire Enerflex in October. Enerflex then formed a special committee of independent directors to weigh the bid.
Enerflex and its financial advisors have received expressions of interest from bona fide third parties and are broadly canvassing other parties, in Canada and internationally, who may be interested in a transaction with Enerflex, Aldred added.
Shares of Enerflex closed at C$13.60, while those of Toromont closed at C$25.55 Monday on the Toronto Stock Exchange.
($1=1.048 CANADIAN DOLLAR) (Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal)