Wajax Corporation
TSX : WJX

Wajax Corporation

January 04, 2011 08:07 ET

Wajax Announces Completion of Conversion, Dividend Declarations for January and February and Adoption of A Shareholder Rights Plan

MISSISSAUGA, ONTARIO--(Marketwire - Jan. 4, 2011) - Wajax Corporation ("Wajax") (TSX:WJX) announced today completion of the conversion of Wajax Income Fund to a corporation pursuant to a Plan of Arrangement under the Canada Business Corporations Act.

Effective January 1, 2011, unitholders of Wajax Income Fund automatically received one common share of Wajax Corporation in exchange for each unit of the fund. Trading of Wajax's common shares will commence today on the Toronto Stock Exchange under the symbol WJX. Wajax's business will continue to be carried on by the same management team in place prior to completion of the conversion.

Dividends

Wajax today declared monthly dividends of $0.15 per share ($1.80 annualized) for January and for February, payable on February 22, 2011 and March 21, 2011 to shareholders of record on January 31, 2011 and February 28, 2011 respectively. These dividends are eligible dividends within the meaning of the Income Tax Act (Canada).

Shareholder Rights Plan

Wajax also announced the adoption of a Shareholders Rights Plan effective January 4, 2011. The Rights Plan has been adopted to ensure the fair treatment of all Wajax shareholders in the event of any take-over bid for the corporation. The Rights Plan provides a mechanism to ensure that shareholders and the board will have adequate time to properly evaluate and assess a take-over bid and also provides the board with additional time, where appropriate, to explore alternatives to maximize shareholder value. The Rights Plan is not designed to prevent take-over bids that treat Wajax's shareholders fairly.

Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders is deemed to be a "Permitted Bid". A Permitted Bid must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, in addition to certain conditions, must remain open for a minimum of 60 days. If a take-over bid made for Wajax does not meet the Permitted Bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholders involved in the take-over bid, to purchase additional common shares of Wajax at a significant discount to the market price of the common shares at that time.

Wajax's board of directors is not aware of any pending or proposed take-over bid for Wajax.

The Rights Plan has been accepted by the Toronto Stock Exchange, and is subject to ratification at the annual general and special meeting of shareholders to be held in May 2011. If ratified by shareholders at the May meeting, the Rights Plan will be subject to confirmation by shareholders at every third annual meeting of the corporation thereafter.

Wajax Corporation

Wajax is a diversified corporation that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems through a network of over 110 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Contact Information

  • Wajax Corporation
    Neil Manning
    President and Chief Executive Officer
    (905) 212-3300
    nmanning@wajax.com
    or
    Wajax Corporation
    John Hamilton
    Chief Financial Officer
    (905) 212-3300
    jhamilton@wajax.com