Enerchem International Inc. Announces Take-Over Bid by Private Canadian Company for $2.75 Cash per Share

TSX: ECH

 

CALGARY, April 22 /CNW/ - Enerchem International Inc. ("Enerchem" or the "Corporation") announced today that that it has entered into a pre-acquisition agreement (the "Agreement") with a private Canadian company (the "Offeror") pursuant to which the Offeror will offer to acquire all of the issued and outstanding common shares ("Common Shares") of Enerchem (the "Offer") by way of a take-over bid. The consideration to be offered for each Common Share under the Offer will be $2.75 cash per Common Share, which represents a 47% premium over the closing price of Enerchem on April 21, 2010. The total purchase price offered by the Offeror will be approximately $41.6 million.

The Board of Directors of Enerchem (the "Board") has unanimously approved the Offer and has concluded that the transaction is in the best interests of Enerchem and recommends that Enerchem shareholders tender their shares in acceptance of the Offer.

Cormark Securities Inc. acted as financial advisor to Enerchem in connection with the Offer and has provided a verbal fairness opinion to the Board indicating that the cash consideration to be received by Enerchem shareholders under the Offer is fair from a financial point of view to the shareholders of Enerchem.

Enerchem International Inc. Announces Take-Over Bid by Private Canadian Company for $2.75 Cash per Share

TSX: ECH

 

CALGARY, April 22 /CNW/ - Enerchem International Inc. ("Enerchem" or the "Corporation") announced today that that it has entered into a pre-acquisition agreement (the "Agreement") with a private Canadian company (the "Offeror") pursuant to which the Offeror will offer to acquire all of the issued and outstanding common shares ("Common Shares") of Enerchem (the "Offer") by way of a take-over bid. The consideration to be offered for each Common Share under the Offer will be $2.75 cash per Common Share, which represents a 47% premium over the closing price of Enerchem on April 21, 2010. The total purchase price offered by the Offeror will be approximately $41.6 million.

The Board of Directors of Enerchem (the "Board") has unanimously approved the Offer and has concluded that the transaction is in the best interests of Enerchem and recommends that Enerchem shareholders tender their shares in acceptance of the Offer.

Cormark Securities Inc. acted as financial advisor to Enerchem in connection with the Offer and has provided a verbal fairness opinion to the Board indicating that the cash consideration to be received by Enerchem shareholders under the Offer is fair from a financial point of view to the shareholders of Enerchem.