Company's Quarterly Business Results on Track Despite Challenging Economy
TORONTO, June 18 /CNW/ - The Special Committee of Independent Directors
of Patheon Inc. ("Patheon") (TSX:PTI) today announced that it believes fewer
than 30,000, or approximately 0.03%, of the Company's Restricted Voting Shares
were tendered during the latest extension to the hostile insider offer ("the
Offer") by JLL Patheon Holdings LLC ("JLL").
Since May 20, 2009 JLL has taken up fewer than 100,000 additional Patheon
Restricted Voting Shares.
JLL continues to offer US$2.00 per Restricted Voting Share, a price that
is well below the range of an independent valuation of the Company and which
both the Special Committee and the Board of Directors have recommended
shareholders should reject.
"It is not in the Company's interests or in the interests of other
shareholders for JLL to continue with this inadequate and unfair offer," said
Paul Currie, Chairman of the Special Committee. "Patheon's shares continue to
trade well above the JLL Offer and fewer shares are tendered to each extension
of the Offer. It is obvious that shareholders do not want the Offer and that
the Company should be allowed to focus entirely on its business."
The JLL offer was first announced in December 2008 and has now been
extended for the fourth time to expire at the end of June. While JLL continues
to extend the expiry of the Offer it has refused to alter the Offer to provide
fair value to Patheon shareholders although it is clear that holders of a
majority of the Company's Restricted Voting Shares oppose the offer and will
JLL's actions are consistent with tactics the Special Committee has
described as coercive and not in the best interests of Patheon shareholders.
Even with the continuing distraction of the JLL Offer, Patheon continues
to make progress on its strategic plan and in delivering improved performance
for shareholders, as demonstrated by its financial results for the second
quarter announced on June 12, 2009. These improved financial results, as well
as the announcement of new business initiatives and capabilities, were
achieved during a period of challenging economic and business conditions
The Special Committee continues to believe, based on all information
provided to it to date, that an independent Patheon, successfully implementing
on its strategy, remains the best available alternative for shareholders.
Patheon shareholders can help maintain the independence of their company
simply by not tendering their shares to the JLL bid.
Patheon Inc. (TSX:PTI; www.patheon.com) is a leading global provider of
contract development and manufacturing services to the global pharmaceutical
industry. Patheon prides itself in providing the highest quality products and
services to more than 300 of the world's leading pharmaceutical and
biotechnology companies. Patheon's services range from preclinical development
through commercial manufacturing of a full array of dosage forms including
parenteral, solid, semi-solid and liquid forms. Patheon uses many innovative
technologies including single-use disposables, Liquid-Filled Hard Capsules and
a variety of modified release technologies.
Patheon's comprehensive range of fully integrated Pharmaceutical
Development Services includes pre-formulation, formulation, analytical
development, clinical manufacturing, scale-up and commercialization. Patheon
can take customers direct to clinic with global clinical packaging and
distribution services and Patheon's Quick to Clinic(TM) programs can
accelerate early phase development project to clinical trials while minimizing
the consumption of valuable API.
Patheon's integrated development and manufacturing network of 11
facilities, and 6 development centers across North America and Europe, strives
to ensure that customer products can be launched with confidence anywhere in
Caution Concerning Forward-Looking Statements
This news release may contain forward-looking statements which reflect
management's expectations regarding the Company's future growth of operations,
performance (both operational and financial) and business prospects and
opportunities. These statements are made in the context of the risks and
uncertainties that are outlined in the Company's public documents, which can
be accessed on our website at www.patheon.com or on SEDAR at www.sedar.com.
For further information:
For further information: Special Committee - Information Agent for the
Special Committee, Kingsdale Shareholder Services, 1-866-851-3212; Media -
John Lute, Lute & Company, (416) 929-5883, email email@example.com