Business
Chemtrade Announces Offer to Acquire Canexus
Chemtrade Announces Offer to Acquire Canexus Chemtrade Announces Offer to Acquire ...
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\n\nChemtrade Announces Offer to Acquire Canexus\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nChemtrade Announces Offer to Acquire Canexus\nCanada NewsWire\nTORONTO, Oct. 3, 2016\n\n\n\n\nChemtrade to offer $1.50 in cash per Canexus common share. \nOffer represents a significant 21% premium to the closing price of the Canexus common shares on September 13, 2016. \nChemtrade to present Offer directly to shareholders after the Canexus board of directors repeatedly refuses to engage.\n\n\n\nTORONTO, Oct. 3, 2016 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) (\"Chemtrade\" or \"We\" or \"Us\" or the \"Fund\") announced today that an indirect wholly-owned subsidiary of the Fund (the \"Offeror\") intends to commence an offer (the \"Offer\") on October 4, 2016 to acquire all of the issued and outstanding common shares (the \"Common Shares\") of Canexus Corporation (TSX:CUS) (\"Canexus\"). The Offer will remain open until 5:00 p.m. (Calgary time) on January 18, 2017 unless extended, accelerated or withdrawn by Chemtrade in accordance with the terms of the Offer.\n\nUnder the terms of the Offer, Chemtrade proposes to acquire all of the issued and outstanding Common Shares of Canexus for $1.50 in cash per Common Share. This represents a 21% premium to the closing price of the Canexus Common Shares on the TSX on September 13, 2016 (the last trading day prior to the public announcement by Chemtrade of its initial proposal to the Canexus board of directors). The Offer values Canexus at an enterprise value of approximately $884 million, which implies a multiple of 8.4x the mid-point of Canexus' 2016 Adjusted Cash Operating Profit (\"ACOP\") guidance range of $100 to $110 million.\n\nIn connection with the Offer, Chemtrade issued a letter to Canexus shareholders, the full text of which follows:\n\nMonday, October 3, 2016\n\nDear Canexus shareholders,\n\nOver the past few weeks Chemtrade has made several attempts to engage directly with the board of directors of Canexus (the \"Canexus Board\") to negotiate a value maximizing transacti...