Kelso and EACOM jointly announce that the Offeror will take up and accept for payment an additional 23,427,257 Common Shares validly deposited under the Extension, which together with the 643,482,709 Common Shares previously deposited under the Offer and taken up by the Offeror, represent approximately 98.24% of the issued and outstanding Common Shares.
Following the take‐up and acceptance for payment of 23,427,257 Common Shares validly deposited under the Extension together with the 643,482,709 common shares previously deposited under the Offer and taken up by the Offeror, Kelso and its affiliates will now own and control 666,909,966 Common Shares or approximately 98.24% of the issued and outstanding Common Shares in the capital of EACOM.
The Offeror indicated under the support agreement with the Company dated March 22, 2013 (the “Support Agreement”) relating to the Offer that if more than 90% of the Common Shares were taken up by the Offeror, it could elect to proceed to acquire the remainder of Common Shares not deposited under the Offer (the “Remaining Shares”) under the compulsory acquisition procedure under the Business Corporations Act (British Columbia), (the “Act”), if available. Consequently, the Offeror announces that it will proceed with a compulsory acquisition procedure under the Act to acquire the Remaining Shares at a price of $0.38 per Common Share, being the same consideration as contained in the Offer.
The Offeror will send a notice of compulsory acquisition to EACOM shareholders that have not deposited their Common Shares under the Offer.
The business activities of EACOM Timber Corporation consist of the manufacturing, marketing and distribution of lumber, wood chips and woodbased value‐added products, and the management of forest resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures.
Kelso & Company is one of the oldest and most established firms specializing in private equity.
