Desjardins mails out takeover bid circulars

Desjardins Financial Corporation has mailed its formal offer and take-over bid circular to registered shareholders of Western Financial Group, which offers insurance and financial services in British Columbia, Alberta, Saskatchewan and Manitoba.

In late December, Desjardins entered into a support agreement with Western Financial Group to acquire all of the issued and outstanding common shares of Western Financial at a price of $4.15 per common share in cash for a total transaction value of $443 million.

“We are delighted that Western Financial recognizes the value of our offer,” said Desjardins Financial Group chair of the board, president and CEO, Monique F. Leroux, in the company’s initial announcement. “This transaction will allow us to accelerate our business development in Western Canada, and in that way, it is perfectly aligned with our strategic plan.”

The board of directors of Western Financial Group has unanimously resolved to recommend that holders of common shares accept the offer, which expires at 5:00 p.m. EST on Feb. 28, 2011, unless extended or withdrawn by Desjardins.