ENP Newswire -
Release date- 07082014 -
The Plan does not prevent a take-over of Chaparral. The Plan discourages discriminatory, coercive or unfair takeovers of Chaparral and gives the Board time, if the Board determines it is appropriate to take such time, to pursue alternatives to maximize shareholder value in the event an unsolicited take-over bid is made for all or a portion of the outstanding Chaparral Shares.
The Plan will help prevent a creeping take-over bid, in which a potential acquirer acquires a 'blocking position' of shares in private transactions or market purchases sufficient to block any competitive take-over offers, thereby preventing a competitive take-over auction process.
In the event of an acquisition of 20% or more of the outstanding common shares of the Company by a an Acquiror, other than by way of a Permitted Bid, each Right will entitle the holder thereof, other than the Acquiror, to acquire common shares of the Company at a 50% discount to the then-current market price.
In order for a take-over bid to qualify as a Permitted Bid under the Plan, the bid must provide that no shares will be taken up under the bid for a period of at least 60 days after the bid is commenced.
A Permitted Bid must also satisfy certain other conditions, including that more than 50% of the outstanding common shares held by persons unrelated to the bidder must be deposited pursuant to the bid and not withdrawn before any common shares may be taken up under the bid and paid for, and that, in the event that such number of shares are deposited, the bidder will make a public announcement of that fact and the bid will remain open for deposits of common shares for not less than ten business day following the date of such public announcement.
The Company intends to submit the Plan for approval by the Company's shareholders within six months. The Plan also remains subject to regulatory approval, including the approval of the
Chaparral is a
Tel: 1 480 483 9932
Tel: 1 514 939 3989
Some of the statements contained in this release are 'forward-looking statements' within the meaning of Canadian securities law requirements, including statements relating to regulatory and shareholder approval of the Plan and negotiations with the
Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties relating to obtaining receipt of shareholder approval of the Plan. Except as required pursuant to applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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