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Canexus appoints David Collyer as Board Chair, Special Committee to evaluate and respond to Chemtrade's hostile takeover bid

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Canexus appoints David Collyer as Board Chair, Special Committee to evaluate and respond to Chemtrade's hostile takeover bid

October 07, 2016 - 14:09
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CALGARY, AB, Oct. 6, 2016 (Marketwired) -The Board of Directors of Canexus Corporation today appointed David Collyer as Chair, following the untimely passing of former Board Chair Hugh Fergusson. Mr. Collyer was most recently President and CEO of the Canadian Association of Petroleum Producers (CAPP) from 2008 until 2014. Previously, Mr. Collyer was President and Country Chair for Shell Canada. During his 30 year career with Shell, Mr. Collyer held a broad range of technical, business, marketing and senior leadership roles in the oil and gas industry. Also, Mr. Collyer serves on the board of directors of AltaLink.

A Special Committee of independent directors will oversee the Corporation's response to the hostile takeover bid launched by Chemtrade Logistics Income Fund ("Chemtrade"). The Special Committee comprises Arthur Korpach as Chair and Douglas Hayhurst. The Canexus board is evaluating Chemtrade's hostile takeover bid and will issue a directors' circular on or before October 19, 2016, as required by securities legislation. The director's circular will include, among other things, the board's recommendation to shareholders and an outline of Canexus' recent engagement with Chemtrade.

"The Canexus Board is committed to acting in the best interests of the Corporation and its shareholders, including through a potential sale of the company -- but only at a full and fair value," said Board Chair, David Collyer. "We will have more to say regarding Chemtrade's bid when we file our circular, but as the record will show, this has always been a question of value, not of engagement."

Advisors

Canexus has retained CIBC Capital Markets and The Valence Group as financial advisors, Stikeman Elliott LLP as legal counsel, Longview Communications Inc. as communications advisor and Kingsdale Shareholder Services as information agent and shareholder services advisor.

Shareholders with questions are encouraged to call Kingsdale Shareholder Services at 1-866-581-0507 or contactus@kingsdaleshareholder.com.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers and is committed to Responsible Care® through safe operating practices. Canexus' common shares (CUS) and debentures Series IV - CUS.DB.B; Series V - CUS.DB.C; Series VI - CUS.DB.D) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.