Premier Tech
TSX : PTL.A

Premier Tech

October 10, 2006 18:16 ET

Gestion Bernard Belanger Secures the Financing and Will Offer CA$3.00 per Share to Privatize Premier Tech

RIVIERE-DU-LOUP, QUEBEC--(CCNMatthews - Oct. 10, 2006) - Premier Tech Ltd ("Premier Tech")(TSX:PTL.A) has been advised by Gestion Bernard Belanger Ltee ("Gestion Bernard Belanger"), a company controlled by Bernard Belanger, Chairman of the Board and Chief Executive Officer of Premier Tech, that Gestion Bernard Belanger, which controls Premier Tech, has entered into a lock-up agreement with Oakwest Corporation Limited ("Oakwest") pursuant to which Oakwest agreed to deposit all 1 421 401 Class A subordinated voting shares of Premier Tech it holds, directly or indirectly, as part of a possible privatization by Gestion Bernard Belanger. Under the terms of this agreement, Oakwest has undertaken to deposit its shares against the payment of CA$3.00 per share under the condition that a take-over bid or merger proposal be announced at the latest on December 31, 2006.

Premier Tech had been advised, last May, that Gestion Bernard Belanger had entered into an agreement with Fonds de solidarite FTQ ("the Fonds") pursuant to which the Fonds had agreed, conditional upon Gestion Bernard Belanger securing the financing, to sign a lock-up agreement providing an undertaking on the part of the Fonds to deposit all 5 205 565 Class A subordinated voting shares of Premier Tech it holds as part of a possible privatization. Under the terms of this agreement, the Fonds had undertaken to sign the lock-up agreement on the conditions that the price be at least CA$2.75 per share and that a take-over bid or merger proposal be announced at the latest on December 31, 2006.

Premier Tech has also been advised by Gestion Bernard Belanger that it has secured the financing required to privatize Premier Tech and that it intends, over the coming weeks, to offer CA$3.00 per share to all shareholders, including the Fonds, by way of a take-over bid or merger proposal.

On the advice of its legal counsel, the Board of Directors of Premier Tech had set up, last April, a committee of independent directors who are members of Premier Tech's Board, made up of Messrs. Marc-Yvan Cote (Committee Chairman), Gilles Laurin, Jean-Yves Leblanc and Roger Samson. In the event steps are taken toward privatization, this committee has been instructed to make its recommendations.

CORPORATE PROFILE

For more than 80 years, Premier Tech has been building its know-how and reputation on the various technology-oriented opportunities offered by sphagnum peat moss, an abundant natural resource in Canada. Its seven business units, gathered in three groups - Horticulture and Agriculture, Industrial Equipment and Environmental Technologies - have the mission to become technological and commercial leaders in their respective fields of expertise. Buoyed by a multidisciplinary team of over 1 500 people based in America, Europe and Asia, Premier Tech is building on the development of its personnel, on innovation, research and development, and on the introduction of value-added products. Its strategic approach is supported by ongoing worldwide market development efforts. Premier Tech shares are listed on the Toronto Stock Exchange, in Canada, under the symbol PTL.A.

Contact Information

  • Source:
    Premier Tech Ltd
    or
    Premier Tech Ltd
    Bernard Belanger
    Chairman of the Board, Chief Executive Officer
    418-867-8883, Ext. 6336
    418-867-8297 (FAX)
    maul@premiertech.com
    or
    Premier Tech Ltd
    Marc-Yvan Cote
    Chair of the Special Committee of the Board
    418-867-8883, Ext. 6336
    418-867-8297 (FAX)
    investors@premiertech.com