TORONTO, Aug. 21 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC,
CTC.a) announced today that it has received a copy of an unsolicited below
market "mini-tender" offer by TRC Capital Corporation ("TRC") to purchase up
to 1,000,000 Class A Non-Voting shares of Canadian Tire, representing
approximately 1.28% of Canadian Tire's outstanding Class A Non-Voting shares.
The offer price of $54.00 per share represents a 4.09% discount to the
closing price of the Canadian Tire Class A Non-Voting shares on the TSX on
August 19, 2009 ($56.30), the day prior to the date of the offer.
Canadian Tire recommends that shareholders NOT tender their shares in
response to TRC's unsolicited mini-tender offer. TRC has made numerous
unsolicited mini-tender offers for shares of other companies. Mini-tender
offers are widely-disseminated offers to purchase a small percentage of a
company's shares at a price below the current market price which avoid most of
the filing, disclosure and procedural requirements applicable to most bids
under Canadian securities legislation.
Canadian Tire is in no way associated with TRC, its offer or the offer
Shareholders who are considering tendering their shares to TRC's
mini-tender offer are strongly urged to exercise caution with respect to TRC's
mini-tender offer, obtain current market quotations for their Canadian Tire
shares, consult with their financial advisors and carefully examine TRC's
mini-tender offer to determine whether it is in their best interests to tender
to an offer that is BELOW the current market price.
The Canadian Securities Administrators ("CSA") have expressed serious
concerns about mini-tender offers such as the possibility that investors might
tender to a mini-tender offer based upon a misunderstanding of the terms of
the offer, including the per security price available under the offer relative
to the market price of such securities.
Securities regulators in the United States and Canada have recommended
that shareholders exercise caution in connection with mini-tender offers and
that they consult their investment advisors regarding these types of offers.
The U.S. Securities and Exchange Commission has published investor tips
regarding mini-tender offers on its website at:
www.sec.gov/investor/pubs/minitend.htm. Comments from the Canadian Securities
Administrators on mini-tenders can be found under Staff Notice 61-301 at:
Canadian Tire Corporation, Limited (TSX: CTC.a, CTC), operates more than
1,200 general merchandise and apparel retail stores and gas stations in an
inter-related network of businesses engaged in retail, financial services and
petroleum. Canadian Tire Retail, Canada's most shopped general merchandise
retailer, with 475 stores operated by Dealers across Canada offers a unique
mix of products and services through three specialty categories in which the
organization is the market leader - Automotive, Sports and Leisure, and Home
Products. www.canadiantire.ca offers Canadians the opportunity to research
more than 25,000 products online. PartSource is an automotive parts specialty
chain with 88 stores designed to meet the needs of purchasers of automotive
parts - professional automotive installers and serious do-it-yourselfers.
Canadian Tire Petroleum is one of the country's largest and most productive
independent retailers of gasoline, operating 273 gas bars, 267 convenience
stores and kiosks, and 73 car washes. Mark's Work Wearhouse is one of the
country's leading apparel retailers operating 375 stores in Canada. Under the
Clothes that Work(TM) marketing strategy, Mark's sells apparel and footwear in
work, work-related, casual and active-wear categories, as well as health-care
and business-to-business apparel. www.marks.com offers Canadians the
opportunity to shop for Mark's products online. Canadian Tire Financial
Services has issued over five million Canadian Tire MasterCard credit cards
and also markets related financial products and services for retail and
petroleum customers. Canadians can also access Financial Services online at
www.ctfs.com. More than 57,000 Canadians work across Canadian Tire's
organization from coast-to-coast in the enterprise's retail, financial
services, and petroleum businesses.
For further information:
For further information: Michael Medline: (416) 480-3054,