Trailmobile plans to take Trailmobile Canada private

MISSISSAUGA, Ont. (Feb. 5, 2002) — Trailmobile Canada Ltd. said yesterday that its majority shareholder, an Ontario-based holding company controlled by Trailmobile Corp., intends to acquire all outstanding common shares for approximately $2.15 million and take the company private.

Trailmobile Corp. is a private company based in Chicago. Through its holding company it would pay 10 cents a share, a premium of 25% to Trailmobile’s closing market price of 8 cents on Feb. 1, on the Toronto Stock Exchange. The stock jumped 50%, or four cents, on the day, in a single trade of 9000 shares.

There are currently 56.18 million shares outstanding. Trailmobile Corp. controls approximately 34.7 million shares, or 61.77%. Trailmobile said holders of almost half of the minority shares have agreed to tender to the offer.

In a statement, Trailmobile Corp. chairman and CEO Edward Wanandi said obligations imposed by Trailmobile Canada’s lenders and pressures of meeting continued listing requirements of the TSE necessitated the offer.

Last week, Trailmobile Canada released its fiscal results for the year ended Sept. 28, 2001. Revenues were $72.0 million, a decrease of $60.5 million or 45.7% when compared to revenues for the same period a year earlier.

Excess manufacturing capacity in addition to the lowest demand for dry van trailers in 10 years, resulted in lower profit margins and a loss of $2.4 million for the year, the company said.

Trailmobile Canada trades on the TSE under the symbol TMX.