Clarke Inc. Announces Withdrawal of Proposal to Privatize Supremex Inc.

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[{"type":"text","content":"\n\n\nHALIFAX, Aug. 12, 2013 /CNW/ - Clarke Inc. (\"Clarke\") (TSX: CKI CKI.DB.A) announced today that it has withdrawn its\n proposal to acquire all of the outstanding shares of Supremex Inc. (\"Supremex\").\n\n\nClarke announced in March 2012 that it had delivered to Supremex a\n proposal to acquire all of the outstanding shares of Supremex for a\n purchase price of $1.20 per share (the \"Proposal\"). Since that time, Clarke has engaged in good faith with a committee\n of independent directors of Supremex appointed to evaluate the Proposal\n with a view to completing a supported acquisition transaction. However,\n after five months of discussions, Clarke does not believe it will be\n able to reach an agreement with the special committee and, therefore,\n has withdrawn the Proposal.\n\n\nMichael Rapps, Vice President of Investments, stated \"We are\n disappointed with the results of our discussions with Supremex. We\n consistently tried to reach an agreement that was both fair to Supremex\n shareholders and reflective of conditions in the economy generally and\n the envelope industry in particular. The envelope business continues to\n decline and those declines will get worse in coming years, the largest\n envelope company in North America has just declared bankruptcy for the\n second time in three years and Supremex has considerable actual and\n contingent liabilities that Clarke would be forced to address\n immediately after an acquisition. Since announcing our offer five\n months ago, we did not receive a single inquiry from any third party\n expressing interest in acquiring Supremex. We believed that acquiring\n Supremex at this time would deliver immediate liquidity and certainty\n of value to shareholders and it is unfortunate that the special\n committee does not feel the same way.\"\n\n\nClarke intends to consider its options with respect to the Supremex\n shares it owns, including acquiring additional shares, maintaining its\n current shareholding or disposing of its shares in the open market.\n\n\nAbout Clarke\n\n\nHalifax-based Clarke invests in a variety of private and publicly-traded\n businesses and participates actively where necessary to enhance\n performance and increase return. Clarke's securities trade on the\n Toronto Stock Exchange (CKI; CKI.DB.A); for more information about\n Clarke, please visit our websi...

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