Canadian appliance maker Camco is reminding its shareholders that the previously announced offer by a wholly-owned subsidiary of Latin America appliance producer Controladora Mabe S.A. de C.V. for all the common shares of Camco at a price of U.S. $3.52 per share is currently scheduled to expire at 5 p.m. (Toronto time) on Thursday, Sept. 22, 2005.
The offer represents a premium of 53 percent to the July 22, 2005 closing price of the Camco common shares. The offer is subject to conditions, including a minimum of 75.5 percent of the outstanding shares of Camco being tendered.
Details of Mabe's offer were sent to shareholders on August 17, 2005. Camco's directors also sent to shareholders on August 17, 2005 a circular containing their recommendation that shareholders accept the offer and tender their common shares.
A Special Committee of Camco's board of directors, which is comprised entirely of independent directors, unanimously supports the offer. Camco's board recommends shareholders accept the offer for various reasons, including that the offer represents a substantial premium to the trading price of Camco's shares and represents a liquidity opportunity for shareholders; with recent announcements of the competing offers to acquire Maytag Corporation, the industry is continuing to consolidate and Camco is at risk as a small player in the market; and Camco's reliance upon GE as it's major customer and supplier puts Camco at risk if the terms available are unfavorable relative to other global suppliers.
Mabe operates 13 manufacturing plants in total, eight of which are in Mexico. The company manufactures 12 million appliances annually, employs 18,000 employees and expects 2005 sales of $2.2 billion. Mabe is a major exporter of ranges and refrigerators to the U.S. market through a relationship with GE, which holds a 48-percent interest in Mabe.
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