Logibec Groupe Informatique Ltd.
TSX : LGI

Logibec Groupe Informatique Ltd.

June 13, 2005 19:20 ET

Logibec Announces the Success of its All Cash Offer for the Common Shares Of MDI Technologies Inc.

MONTREAL, QUEBEC--(CCNMatthews - June 13, 2005) - Logibec Groupe Informatique Ltd. (TSX:LGI) ("Logibec") is pleased to report the success of its offer (the "Offer") to acquire, through its wholly-owned subsidiary, LGI Acquisition, Inc. ("LGI") all the outstanding common shares (the "Shares") of MDI Technologies, Inc. (TSX-V: MDD.U) ("MDI Technologies"). As at the expiry time of 4:00 p.m. (Eastern time) on June 13, 2005, in excess of 10.1 million Shares had been validly deposited pursuant to the Offer and not withdrawn representing approximately 84% of the total number of Shares outstanding. The Shares tendered, together with the Shares owned by LGI and/or its affiliates represent approximately 94% of the total number of Shares outstanding. Logibec also announces that all of the conditions of the Offer have been fulfilled or waived by LGI. As a result, all Shares validly deposited pursuant to the Offer and not withdrawn will be taken up and paid for by LGI not later than 10 days after the expiry time.

As disclosed in the Offer to Purchase and Circular relating to the Offer, once it has taken up and paid for the Shares validly tendered pursuant to the Offer, LGI intends to effect a short-form merger with MDI under Delaware law pursuant to which holders of Shares who have not tendered their Shares to the Offer will cease to be shareholders of MDI but will instead only be entitled to receive a cash payment of US$2.60 for each Share held. Such merger will be effected without any action or approval of any stockholders of MDI (other than LGI). Under Delaware law, each holder of Shares who has not tendered their Shares in the Offer and has neither voted in favour of such a merger nor consented thereto in writing and who properly demands an appraisal of their Shares will be entitled to an appraisal by the Delaware Court of Chancery of the fair value of his or her Shares, exclusive of any element of value arising from the accomplishment or expectation of the merger.

ABOUT LOGIBEC

LOGIBEC is among the ten largest Canadian companies specializing in the development, marketing, implementation and support of information systems for the health and social services sector. Over 400 health organizations use its products and services delivered by an experienced team of employees that numbered over 200 as of March 31, 2005. The Company has its head office in Montreal as well as offices in Quebec City and Edmonton.

FORWARD LOOKING INFORMATION: This news release may contain certain statements related to revenues, expenses, development plans and similar items that represent forward-looking statements. Such statements are based on assumptions and estimates related to future economic and market conditions. The assumptions are reviewed regularly by management, however, they involve risks and uncertainties including, without limitation, changes in markets and competition, technological and competitive developments, and potential downturns in economic conditions generally, that could cause actual results to differ materially from those contemplated in the forward-looking statements.

THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • LOGIBEC GROUPE INFORMATIQUE LTD.
    Claude Roy
    President and Chief Executive Officer
    (514) 766-0134
    claude_roy@logibec.com