Cascal N.V.'s Board Rejects Inadequate and Coercive Sembcorp Offer; Advises Shareholders To Take No Action
LONDON, April 26 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE: HOO) -- The Board of Directors of Cascal today rejected as inadequate and coercive a proposed acquisition of Cascal by Sembcorp Industries Ltd. through its wholly owned subsidiary, Sembcorp Utilities Pte Ltd ("Sembcorp"). Sembcorp today announced that it intended to make an offer to acquire Cascal's outstanding common shares for $6.75 per share in cash, which consideration would be reduced to $6.40 per share in the event that Sembcorp is not able to acquire at least 80% or more of Cascal's outstanding shares.
Cascal, through an independent committee of directors, recently rejected a similar offer by Sembcorp.
"Cascal is not seeking to sell itself at this time. Sembcorp's announced two-tiered and below market offer appears to be intended to force shareholders to sell their securities at an inadequate price or risk both a reduction in the consideration offered to them and a loss of access to a liquid market for their securities," said Michael Wager, Chairman of the Special Committee of the Board of Directors of Cascal. "Cascal intends to do all things necessary to protect its shareholders from Sembcorp's inadequate and unsolicited offer."
The proposed offer was made in connection with a privately-negotiated transaction between the Sembcorp and Biwater Investments Limited ("Biwater"). Cascal understands that Sembcorp has entered into an agreement with Biwater to acquire Biwater's 17,868,543 shares in Cascal.
The offer was not solicited by Cascal. Cascal's common shares closed at $7.61 per share on Friday, April 23, 2010.
About Cascal N.V.
Cascal provides water and wastewater services to its customers in eight countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama, Antigua and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 4.7 million.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION LEGEND:
SECURITY HOLDERS SHOULD READ CASCAL N.V.'S SOLICITATION/RECOMMENDATION STATEMENT WHEN IT IS AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. INVESTORS MAY OBTAIN THE RECOMMENDATION AND OTHER FILED DOCUMENTS FREE OF CHARGE AT THE COMMISSION'S WEB SITE (www.sec.gov) AS WELL AS DIRECTLY FROM CASCAL N.V. BY CONTACTING JEFFREY GOLDBERGER, KCSA STRATEGIC COMMUNICATIONS, 880 THIRD AVENUE, NEW YORK, NEW YORK 10022, +1 212.896.1249, [email protected].
Learn more at www.cascal.co.uk
Forward-looking statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. There are important factors, many of which are outside of our control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, housing and population growth trends, changes in energy prices and taxes, fluctuations with currency exchange rates, changes in regulations or regulatory treatment, changes in environmental compliance and water quality requirements, availability and the cost of capital, the success of growth initiatives, acquisitions and our ability to successfully integrate acquired companies and other factors discussed in our filings with the Securities and Exchange Commission, including under Risk Factors in our Form 20-F for the fiscal year ended March 31, 2009, filed with the SEC on July 1,2009. We do not undertake and have no obligation to publicly update or revise any forward-looking statement.
Investor Contacts: |
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KCSA Strategic Communications |
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Jeffrey Goldberger / Marybeth Csaby |
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+1 212.896.1249 / +1 212.896.1236 |
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SOURCE Cascal N.V.
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