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Chemtrade Again Urges Canexus to Engage in Discussions on Potential Value Maximizing Transaction
Chemtrade Again Urges Canexus to Engage in Discussions on Potential Value Maximizing Trans...
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\n\nChemtrade Again Urges Canexus to Engage in Discussions on Potential Value Maximizing Transaction\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nChemtrade Again Urges Canexus to Engage in Discussions on Potential Value Maximizing Transaction\nCanada NewsWire\nTORONTO, Sept. 26, 2016\n\n\n\nTORONTO, Sept. 26, 2016 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) (\"Chemtrade\" or the \"Fund\") announced that on September 15, 2016 it made a revised friendly proposal to acquire Canexus Corporation (TSX:CUS) (\"Canexus\") for $1.50 per share in cash. Chemtrade's revised proposal included a draft arrangement agreement on effectively the same terms as the agreement Canexus entered into with Superior Plus Corp., but with less regulatory risk to Canexus. Chemtrade was prepared to enter into this agreement by September 20, 2016.\n\nDespite the fact that Chemtrade's revised proposal represented fair value, provided 100% cash consideration and low completion risk to Canexus shareholders, the Canexus board of directors (the \"Canexus Board\") chose not to engage with Chemtrade to negotiate a value-maximizing transaction. \n\nTimeline of Events:\n\n\nAs previously disclosed, on September 6, 2016 Chemtrade made a proposal to the Canexus Board to acquire Canexus for $1.45 per share in cash. The Canexus Board summarily rejected the proposal in a two sentence letter without having any discussions with Chemtrade.\nOn September 14, 2016, Canexus announced the planned issuance of $75 million senior unsecured notes. The following day, two Canexus institutional shareholders issued public letters opposing the offering, observing that the completion of the note offering could impair shareholder value and the likelihood of shareholders receiving a value-maximizing proposal from Chemtrade or another party.\nOn September 15, 2016, Chemtrade made a revised proposal of $1.50 per share and provided a draft arrangement agreement that Chemtrade was prepared to enter into before the scheduled closing of Canexus' note issuance on September 20, 2016. Chemtrade also indicated in its lette...