Camco Inc.
TSX : COC

Camco Inc.

September 14, 2005 16:07 ET

Bid for Camco Inc. Scheduled to Expire September 22, 2005

BURLINGTON, ONTARIO--(CCNMatthews - Sept. 14, 2005) - Camco (TSX:COC) is reminding its shareholders today that the previously announced offer by a wholly-owned subsidiary of Controladora Mabe S.A. de C.V. for all the common shares of Camco at a price of $3.52 per share is currently scheduled to expire at 5:00 p.m. (Toronto time) on Thursday, September 22, 2005.

The offer represents a premium of 53% to the July 22, 2005 closing price (the last trading day prior to the announcement of the offer) of the Camco common shares. The offer is subject to conditions customary in transactions of this nature, including a minimum of 75.5% of the outstanding shares of Camco being tendered. Details of Mabe's offer were sent to shareholders on August 17, 2005. Camco's directors also sent to shareholders on August 17, 2005 a Circular containing their recommendation that shareholders accept the offer and tender their common shares.

A Special Committee of Camco's Board of Directors, which is comprised entirely of independent directors, unanimously supports the offer. The Board of Directors of Camco recommends the Camco shareholders accept the offer and tender their shares into the offer for the following reasons:

1. The offer represents a substantial premium to the trading price of Camco's shares immediately prior to the announcement of the offer, and represents a liquidity opportunity for shareholders that may not be available from any other party in the foreseeable future. If the offer is not successful, trading price for the shares of Camco on the Toronto Stock Exchange may fall back to levels experienced prior to the announcement of the offer.

2. Camco's business on an ongoing basis is subject to significant global competitive pressures, and other strategic issues discussed in Camco's Directors' Circular, that the Special Committee and the Board believe make the offer a fair one.

3. With the recent announcements of the competing offers to acquire Maytag Corporation, the industry within which Camco operates is continuing to consolidate; the sustainability of Camco is at risk as a small player in a market dominated by much larger global companies.

4. Camco's reliance upon GE as Camco's major customer and supplier puts Camco at risk if the terms available to Camco from GE, or which Camco can provide to GE, are unfavourable relative to other global suppliers.

5. Given the relationship between Camco and GE, the Special Committee and the Board consider it very unlikely that an alternative proposal will be available to the Camco shareholders.

6. The offer of $3.52 per share is above the mid-point of the range of values identified by National Bank Financial Inc. in their valuation and National Bank Financial has provided an opinion to the Special Committee that the consideration being offered under the offer is fair, from a financial point of view, to Camco's minority shareholders.

Copies of the offer materials can be obtained from CIBC World Markets Inc., the dealer manager for the offer, at (416) 956-3705. Copies of the offer materials have also been filed with the Canadian Securities Regulatory Authorities. Investors and shareholders may obtain a copy of the Offer materials and related documents filed by Mabe and Camco with the CSA at www.sedar.com.

Camco shareholders who have decided to tender their shares should ensure that they have complied with the procedures set out in Mabe's offering circular prior to 5:00 p.m. (Toronto time) on Thursday, September 22, 2005. Shareholders who have their shares registered in the name of a broker or other nominee should contact the broker to have the shares tendered. Shareholders who hold Camco shares in their own name should complete the Letter of Transmittal or Notice of Guaranteed Delivery in accordance with the procedures set out in the Mabe offering circular.

About Mabe

Mabe, a Mexican company, is a leader in the Latin American appliance market, with commercial and production facilities in most countries of Central and South America. Mabe operates 13 manufacturing plants in total, eight of which are in Mexico. The Company manufactures 12 million appliances annually, employs 18,000 employees and expects 2005 sales of $2.2 billion (USD). Mabe is a major exporter of ranges and refrigerators to the US market through a relationship with GE. GE holds a 48% interest in Mabe. For more information, please visit Mabe's website at www.mabe.com.mx.

About Camco

Camco is the largest Canadian manufacturer, marketer and servicer of home appliances, with 2004 sales of $643 Million (Cdn). The Company's product lines include popular brands such as GE, Profile, Monogram, Hotpoint, Moffat and BeefEater. Camco manufactures clothes dryers and dishwashers at its Montreal Plant, and is the primary supplier of clothes dryers to GE in the US. For information, please visit Camco's website at www.geappliances.ca.


Contact Information

  • Mabe - Mexico
    Rafael Nava
    Public Relations General Manager
    011 (5255) 52271110
    or
    Camco Inc. - Canada
    Neil Gartshore
    Vice-President Finance and CFO
    (905) 315-2389