Plan provides sufficient time to pursue superior alternative
CALGARY, Sept. 9 /CNW/ - (TSX:KHD) Canadian Hydro Developers, Inc.
("Canadian Hydro" or the "Company") confirms that pursuant to a consent order
issued by the Alberta Securities Commission earlier today, the Canadian Hydro
shareholder rights plan (the "Plan") will remain in effect for its 60 day
duration until September 21, 2009, following which time it will be terminated
solely in relation to the offer by 1478860 Alberta Ltd., a wholly-owned
subsidiary of TransAlta Corporation (collectively, "TransAlta"). Otherwise,
the Plan remains in full force and effect.
The Board of Directors of Canadian Hydro continues to recommend
unanimously that shareholders of Canadian Hydro reject TransAlta's unsolicited
offer ("TransAlta offer") of $4.55 cash per share, which was extended today
for the second time and is now due to expire on Tuesday, September 22, 2009.
"We remain confident that we can do better for our shareholders than this
inadequate bid," said Dennis Erker, Chairman of the Board of Directors of
Canadian Hydro. "We are continuing to pursue a full range of alternatives to
generate superior value to the TransAlta offer, and this process takes a
certain amount of time to conduct properly. Since the end of August, a number
of new qualified interested parties have come forward and signed
confidentiality agreements in order to review the detailed information about
the Company contained in the data room we opened on July 30, 2009. We are
pleased to report that discussions continue to advance with several of these
parties; however, there can be no assurances a transaction will result."
Canadian Hydro issued a Directors' Circular on August 4, 2009, which
lists seven reasons why shareholders should reject the TransAlta offer, with
full detail explaining each. To reject the TransAlta offer, shareholders do
not need to take any action. Anyone who has already tendered Common Shares to
the TransAlta offer can withdraw those Common Shares by contacting his or her
broker or Laurel Hill Advisory Group at the number listed below.
The Directors' Circular was mailed to all shareholders on August 6, 2009.
The Circular is also available on the Canadian Hydro website, at
www.canhydro.com, and has been filed on SEDAR and with Canadian securities
regulators. Shareholders are advised to read the Canadian Hydro Directors'
Circular in full, as it contains important information regarding the TransAlta
offer. Inquiries concerning the information in the Directors' Circular should
be directed to Laurel Hill Advisory Group, the information agent retained by
Canadian Hydro, North American toll free at 1-888-534-1152, collect
416-637-4661 or via email at email@example.com.
About Canadian Hydro
"Recognized as one of Jantzi/Maclean's Top 50 Responsible Corporations in
Canadian Hydro is committed to Building a Sustainable Future(R). The
Company is the largest and most diversified developer, owner, and operator of
21 renewable energy generation facilities in Canada totaling net 694 MW of
capacity in operation, 160 MW in and nearing construction, and 1,660 MW in
development. The renewable generation portfolio is diversified across three
technologies (water, wind, and biomass) in the provinces of Alberta, British
Columbia, Ontario, and Quebec. This portfolio is unique in Canada as all
facilities are certified, or slated for certification, under Environment
Canada's EcoLogo(M) Program.
Advisory Respecting Forward-Looking Statements:
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project", "should",
"believe", "plans", "intends", "confident", "might" and similar expressions
are intended to identify forward-looking information or statements. Various
assumptions were used in drawing the conclusions or making the projections
contained in the forward-looking statements throughout this news release. The
forward looking information or statements in this news release relate to, but
are not limited to, statements with respect to the results of any evaluation
of the take-over proposal by TransAlta and any course of action Canadian Hydro
may undertake in response to the take-over proposal by TransAlta.
The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be unduly
relied upon. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those anticipated
and described in the forward-looking statements. Such information and
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking information or statements. The
forward-looking information and statements contained in this news release
speak only as of the date of this news release, and the Company assumes no
obligation to publicly update or revised them to reflect new events or
circumstances, except as may be required pursuant to applicable securities
For further information:
For further information: Investor Relations, Kathy Boutin, Chief
Financial Officer, (403) 298-0256, KBoutin@canhydro.com; Media Relations,
Darryl Warren, Manager, Marketing & Communications, (403) 806-8143,
DWarren@canhydro.com; Internet: www.canhydro.com