Business
Chemtrade Expresses Interest in Acquisition of Canexus
Chemtrade Expresses Interest in Acquisition of Canexus Chemtrade Expresses Interes...
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\n\nChemtrade Expresses Interest in Acquisition of 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 Expresses Interest in Acquisition of Canexus\nCanada NewsWire\nTORONTO, Sept. 14, 2016\n\n\n\nChemtrade Urges Canexus Board to Engage in Discussions  Prior to Completing Its Proposed Note Offering\n\n\n\nTORONTO, Sept. 14, 2016 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) (\"Chemtrade\" or the \"Fund\") announced today that on September 6, 2016 it made a proposal to acquire Canexus Corporation (TSX:CUS) (\"Canexus\") for $1.45 per common share in cash.  This represents approximately an 18% premium to yesterday's closing price of Canexus common shares of $1.23 and a multiple of Adjusted Cash Operating Profit (\"ACOP\") of 8.3x based on the mid-point of Canexus' 2016 ACOP guidance range of $100 to $110 million.  On September 12, 2016, Canexus summarily rejected Chemtrade's proposal without engaging in any discussions with Chemtrade, and subsequently announced its intention to complete a $75 million note offering on September 13, 2016.  The note offering, if completed, includes terms that would negatively impact Canexus shareholder value on an acquisition of Canexus. \n\nChemtrade has done substantial due diligence on Canexus as part of the previous Canexus sale process and is prepared to complete a transaction expeditiously.  If Canexus does not proceed with the note offering and chooses to engage with Chemtrade and permit limited confirmatory due diligence, Chemtrade may be prepared to increase the amount offered to Canexus shareholders. \n\nMark Davis, President and Chief Executive Officer of Chemtrade, said, \"We are disappointed that Canexus has refused to engage with Chemtrade.  We are confident that the combination of the two companies would result in a stronger more diverse business and benefit all stakeholders.  We encourage the Canexus board to engage in discussions with Chemtrade so that we can quickly complete a transaction.\"\n\nChemtrad...