Canada Bread Announces Receipt of Investment Canada Act Approval
Canada Bread Also Announces Expected Closing Date of Grupo Bimbo Transaction
TORONTO, May 13, 2014 /CNW/ - Canada Bread Company, Limited (CBY: TSX) ("Canada Bread" or the "Company") announced that Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo") has received Investment Canada Act approval in connection with the previously announced plan of arrangement between a wholly-owned subsidiary of Grupo Bimbo and Canada Bread (the "Arrangement"). The transaction has previously received shareholder approval and clearance under the Competition Act (Canada) and the Hart-Scott-Rodino Act (USA). No further regulatory or shareholder approvals are required in order for the transaction to close. Grupo Bimbo and Canada Bread have agreed that subject to the satisfaction of the remaining customary conditions to closing, the Arrangement will be completed on May 23, 2014.
Under the terms of the Arrangement, as previously disclosed, a wholly-owned subsidiary of Grupo Bimbo will acquire each common share of Canada Bread for $72.00 per share in cash and, provided the transaction closes on May 23, 2014, a dividend will be deemed to have been declared in the amount of $0.437 per share (being $0.75 per share, pro-rated for the actual number of days elapsed in the second quarter up to and including the closing date of the transaction). This dividend will be payable at the effective time of the Arrangement to holders of record of Canada Bread common shares immediately prior to the effective time of the Arrangement. Unless indicated otherwise by the Company in writing on or before the time the dividend is paid, this dividend will be considered an Eligible Dividend for the purposes of the "Enhanced Dividend Tax Credit System".
About Canada Bread
Canada Bread is a leading manufacturer and marketer of value-added flour based products, including fresh bread, rolls, bagels and frozen partially baked or par-baked breads and bagels. Canada Bread employs approximately 5,400 people at its bakery operations throughout Canada and in the United States and United Kingdom. Canada Bread is 90% owned by Maple Leaf Foods Inc. and its common shares are listed on the Toronto Stock Exchange under the ticker symbol CBY.
About Grupo Bimbo
Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has 144 plants and more than 1,600 distribution centers strategically located in 19 countries throughout the Americas, Europe and Asia. Its main product lines include sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 10,000 products and has one of the most extensive direct distribution networks in the world, with more than 52,000 routes and more than 123,000 employees. Grupo Bimbo's shares have traded on the Mexican Stock Exchange since 1980 under the ticker symbol BIMBO.
Forward Looking Statements
This document may contain "forward-looking information" within the meaning of applicable securities law. Such statements include, but are not limited to, statements with respect to the expected closing date of the Arrangement. There can be no assurances that any transaction will be completed on this date or at all. These statements are not guarantees of future events and involve assumptions and risks and uncertainties that are difficult to predict. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking information. Canada Bread does not intend to, and Canada Bread disclaims any obligation to, update any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Canada Bread Company, LimitedFor further information:
Nick Boland, Vice President Investor Relations
David Bauer, Corporate Communications