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Compton announces extension of MFC take-over bid offer to September 6, 2012
CALGARY, Aug. 28, 2012 /CNW/ - Compton Petroleum Corporation (TSX - CMT) ("Compton" or the ...
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Aug. 28, 2012 /CNW/ - Compton Petroleum Corporation (TSX - CMT)\n (\"Compton\" or the Corporation\") announces that MFC Industrial Ltd.\n (\"MFC\") has extended the expiry time of its take-over bid offer (the\n \"Offer\") for all of Compton's outstanding shares (\"Common Shares\") for\n cash consideration of $1.25 per Common Share to 5:00 p.m. (PDT) on\n September 6, 2012.\n\n\nThe Offer has been extended as MFC is awaiting consent in respect of the\n change of control provisions of Compton's MPP Term Financing\n arrangement. All other requisite change of control approvals in order\n for the transaction to proceed have been received, including: the\n federal government's Commissioner of Competition, the federal Minister\n of Industry under the Investment Canada Act, and Compton's banking\n syndicate under Compton's bank facility.\n\n\nAs at the date hereof, approximately 24.6 million Compton Shares have\n been deposited to the Offer, representing approximately 93.4% of the\n currently outstanding Compton Shares. This satisfies the 66.67% minimum\n tender requirement of the Offer.\n\n\nThe Compton Board of Directors has recommended that Shareholders accept\n the MFC Offer and tender their Common Shares to the MFC Offer, for\n reasons including:\n\n\nThe MFC Offer is the result of an active, extensive and public process\n to assess Compton's strategic alternatives and represents the most\n attractive and best alternative available to Shareholders.\n\n\nThe MFC Offer provides immediate value and liquidity to Shareholders;\n and\n\n\nCompton faces significant financial constraints, including an\n outstanding borrowing base shortfall under its credit facility, which\n challenge Compton's continuing status as a going concern. Compton may\n be forced to seek creditor protection in the event the MFC Offer is not\n completed.\n\n\nDetailed discussions of all reasons for the unanimous recommendation of\n the Board of Directors are described in the Directors' Circular dated\n July 12, 2012.\n\n\nThe Offer will be now be open for acceptance until 5:00 p.m. (PDT) on\n September 6, 2012, unless extended or withdrawn by MFC. Compton's Board\n recommends that shareholders tender their shares if they have not\n already done so. \n\n\nFull details of the Offer are included in the Directors' Circular, Offer\n Documents and rel...