CALGARY, AB, Oct. 19, 2016 (Marketwired) -Canexus Corporation ("Canexus" or the "Corporation") today recommended that shareholders reject the unsolicited offer from Chemtrade Logistics Income Fund ("Chemtrade"), through 1993754 Alberta Ltd., a wholly-owned subsidiary of Chemtrade, to purchase all of the Common Shares of Canexus for $1.50 per Common Share (the "Chemtrade Offer"). The Canexus board has unanimously concluded that the Chemtrade Offer significantly undervalues the Corporation and is not in the best interests of Canexus or its shareholders.
"The Chemtrade Offer does not represent full and fair value for Canexus," said Art Korpach, Chair of the Canexus Special Committee. "We have a strong ongoing business that is positioned to deliver increased value to shareholders. As demonstrated by past behaviour, your Board is not opposed to a sale of the company as long as a sale reflects full and fair value for our assets and our growth potential. The Chemtrade Offer simply doesn't do that."
The basis for the Board's recommendation is contained in a Canexus Directors' Circular which is available on the Canexus website at www.canexus.ca and at www.sedar.com, and which will be mailed to shareholders today. The Canexus Director's Circular also provides a complete background to the Chemtrade offer, with relevant details of the extensive engagement between the two companies that Chemtrade's circular omitted.
Canexus urges shareholders to carefully review the Directors' Circular and cover letter. Canexus also urges shareholders to REJECT the Chemtrade Offer and NOT TENDER their Common Shares.
Shareholders with questions are encouraged to call Kingsdale Shareholder Services toll-free at 1-866-581-0507 or firstname.lastname@example.org.
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 strategic shareholder services advisor.
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.