SOURCE: Canexus Corporation

Canexus Corporation

October 06, 2016 20:09 ET

Canexus Appoints David Collyer as Board Chair, Special Committee to Evaluate and Respond to Chemtrade's Hostile Takeover Bid

CALGARY, AB--(Marketwired - October 06, 2016) - The Board of Directors of Canexus Corporation (TSX: CUS) ("Canexus" or the "Corporation") today appointed David Collyer as Chair, following the untimely passing of former Board Chair Hugh Fergusson. Mr. Collyer was most recently President and CEO of the Canadian Association of Petroleum Producers (CAPP) from 2008 until 2014. Previously, Mr. Collyer was President and Country Chair for Shell Canada. During his 30 year career with Shell, Mr. Collyer held a broad range of technical, business, marketing and senior leadership roles in the oil and gas industry. Also, Mr. Collyer serves on the board of directors of AltaLink.

A Special Committee of independent directors will oversee the Corporation's response to the hostile takeover bid launched by Chemtrade Logistics Income Fund ("Chemtrade"). The Special Committee comprises Arthur Korpach as Chair and Douglas Hayhurst. The Canexus board is evaluating Chemtrade's hostile takeover bid and will issue a directors' circular on or before October 19, 2016, as required by securities legislation. The director's circular will include, among other things, the board's recommendation to shareholders and an outline of Canexus' recent engagement with Chemtrade.

"The Canexus Board is committed to acting in the best interests of the Corporation and its shareholders, including through a potential sale of the company -- but only at a full and fair value," said Board Chair, David Collyer. "We will have more to say regarding Chemtrade's bid when we file our circular, but as the record will show, this has always been a question of value, not of engagement."

Advisors
Canexus has retained CIBC Capital Markets and The Valence Group as financial advisors, Stikeman Elliott LLP as legal counsel, Longview Communications Inc. as communications advisor and Kingsdale Shareholder Services as information agent and shareholder services advisor.

Shareholders with questions are encouraged to call Kingsdale Shareholder Services at 1-866-581-0507 or contactus@kingsdaleshareholder.com.

About Canexus
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers and is committed to Responsible Care® through safe operating practices. Canexus' common shares (CUS) and debentures Series IV - CUS.DB.B; Series V - CUS.DB.C; Series VI - CUS.DB.D) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Forward-Looking Statements
This news release contains forward-looking statements and information relating to expected future events and financial and operating results of the Corporation and its subsidiaries, including with respect to: Oversight by the Special Committee of the Corporation's response to Chemtrade, evaluation of Chemtrade's hostile takeover bid by the board of Canexus and issuance of a directors' circular and contents thereof on or before October 19, 2016, the inclusion of a recommendation to shareholders and outline of Canexus' recent engagement with Chemtrade in the directors' circular, any potential sale of Canexus, value and the board's comments regarding Chemtrade's bid upon filing the directors' circular. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Any financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for those for which it is disclosed herein.

Contact Information

  • Further information:
    Dean R. Beacon
    Senior Vice President, Finance and CFO
    (403) 571-7300

    Sarah Scott

    Investor Relations
    (403) 571-7397

    Media contact:

    Longview Communications Inc.
    Alan Bayless
    (604) 694 6035
    Phoebe Buckland
    (416) 649 8008

    Shareholder contact:

    Kingsdale Shareholder Services
    1-866-581-0507
    contactus@kingsdaleshareholder.com