2158436 Ontario Limited

January 22, 2008 22:23 ET

2158436 Ontario Limited Announces Arrangement Agreement and Support Agreements for Going Private Transaction of Teknion Corporation

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2008) - 2158436 Ontario Limited ("2158436"), an affiliate of Teknion Corporation's ("Teknion") controlling shareholder, A-Tean Holdings Limited ("A-Tean"), today announced that it has entered into an arrangement agreement with Teknion and A-Tean, pursuant to which 2158436 has agreed to acquire all of the subordinate voting shares (the "Shares") of Teknion not owned by A-Tean and its affiliates for a price of $3.15 cash per Share (the "Transaction"). The terms of the arrangement agreement are consistent with the terms of the previously announced agreement relating to the Transaction entered into between 2158436 and Teknion on December 23, 2007.

2158436 also announced today that it has entered into lock-up agreements with shareholders holding 5.1% of the outstanding Shares, pursuant to which such shareholders have committed to support the Transaction. A-Tean and its affiliates currently own approximately 62% of the combined issued and outstanding multiple voting shares and subordinate voting shares of Teknion, and 2158436 had previously entered into lock-up agreements to support the Transaction with institutional shareholders representing approximately 38% of the Shares. As a result of those agreements, shareholders holding approximately 43% of the outstanding Shares have agreed with 2158436 to support the Transaction.

The Transaction will be carried out by way of a statutory plan of arrangement that is subject to court, shareholder and normal regulatory approvals. It is expected that Teknion will hold a meeting of shareholders to consider the Transaction on or about Friday, February 22, 2008, and if approved, that the Transaction will be completed by the end of February. It is expected that a management information circular relating to the Meeting, containing the terms of the Transaction, will be mailed to Teknion's shareholders by no later than January 31, 2008.

The Transaction is subject to customary conditions including, but not limited to, the approval of not less than two-thirds of the shareholders of Teknion voting at the Meeting and a majority of the minority shareholders of Teknion voting at the Meeting, the receipt of all required regulatory approvals and there being no material adverse change with respect to Teknion.

Contact Information

  • 2158436 Ontario Limited