Business
Garneau Inc. announces sale of Camrose Business
Garneau Inc. announces sale of Camrose Business
About this update from Green Arrow Resources, Inc.
[{"type":"text","content":"\n\n\n\nSep. 30, 2009 (Canada NewsWire Group) -- NISKU, AB, Sept. 30 /CNW/ -- Garneau Inc. (\"Garneau\" or the \"Corporation\") announces that the Corporation has entered into an asset purchase agreement (the \"Agreement\") with Bayou Perma-Pipe Canada, Inc. (the \"Purchaser\") to sell all of Garneau's right, title and interest in the assets (the \"Assets\") used by Garneau in the conduct of its business of applying protective coatings and linings for oil and gas pipeline protection as conducted at Garneau's Camrose plant located at 5233 39th Street, Camrose, Alberta (the \"Camrose Business\"). The purchase price for the Camrose Business is $12.25 million, subject to certain escrow provisions and adjustments contained in the Agreement. A copy of the Agreement will be filed on Garneau's SEDAR profile at www.sedar.com.The decision to sell the Camrose Business follows a comprehensive strategic review by a Special Committee of independent directors working with management and financial and legal advisors. The Board of Directors believes the actions announced today are in the best interests of the Corporation and its shareholders, and unanimously recommends that shareholders vote in favor of the sale of Camrose Business.Peters & Co. Limited has provided an opinion to the Board of Directors of Garneau to the effect that the consideration to be paid to the Corporation for the Camrose Business pursuant to the Agreement is fair, from a financial point of view, to the Corporation.A Special Meeting of shareholders has been called for October 28, 2009 to approve the sale of the Camrose Business. The sale must be approved by two-thirds of the votes cast at the meeting and is subject to the Bank and NEX approvals. Shareholders holding approximately 25% of the outstanding Garneau common shares have entered into agreements with the Purchaser whereby they agree to vote in favour of the proposed transaction.Garneau anticipates that a management proxy circular for the shareholder meeting will be mailed to shareholders very shortly and will be available at www.sedar.com.Subject to receipt of applicable approvals, the transaction is expected to close on or before October 30, 2009.About Garneau Inc.------------------Garneau Inc's primary business is the application of high performance protective coating and linings for oil and gas pipeline protection...