TORONTO, Sept. 15 /CNW/ - Teranet Income Fund (TSX: TF.UN) (the "Fund")
today advised its unitholders to take no action at this time with respect to
an announcement late Friday by Borealis Infrastructure Management Inc.
("Borealis") that it has launched a formal offer to purchase all of the
outstanding trust units of the Fund and Class B limited partnership units of
Teranet Holdings Limited Partnership for $11 in cash per unit.
"We are well underway with a process to solicit potential alternative
transactions that may provide greater value to unitholders, and unitholders
should wait for the outcome of this process before making any decisions," said
Aris Kaplanis, President and Chief Executive Officer of Teranet Inc.
("Teranet"). "We have received considerable interest so far from potential
bidders who have signed confidentiality and stand-still agreements in order to
obtain internal information about Teranet. This information is not available
to Borealis, as it has declined to participate in the process."
As previously disclosed, the board of directors of Teranet has
established a Special Committee to manage the process and to evaluate the
Borealis offer. The Special Committee, together with Teranet's advisors, will
evaluate and consider the adequacy of the Borealis offer, consider the full
range of alternatives to maximize unitholder value and make a recommendation
to the board of Teranet and the board of trustees of the Fund.
The board of trustees of the Fund in turn will provide to unitholders a
Trustees' Circular that will contain important information, including the
board's formal recommendation regarding the offer. The Trustees' Circular will
also be filed on SEDAR, the Teranet website, and with Canadian securities
commissions. Teranet advises unitholders to read the Trustees' Circular in its
entirety once it is made available, and to defer making any determination with
respect to the Borealis offer until reading the Trustees' Circular.
The Fund also announced today that, in connection with its recently
implemented unitholder rights plan, the Fund has been advised by the Toronto
Stock Exchange that in accordance with its usual practice where a proposed
take-over bid has been announced, the TSX will defer its consideration of the
plan. The unitholder rights plan remains in effect in accordance with its
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This news release contains statements that, other than statements of
historical fact, may be forward-looking statements about the objectives,
financial condition and results of operations of the Fund. These statements
are forward-looking and reflect management's current views and are based on
certain assumptions and expectations. Actual results could be materially
different from expectations if known or unknown risks affect the business, or
if estimates or assumptions turn out to be inaccurate. No forward-looking
statement is a guarantee of future results. Investors are cautioned not to
place undue reliance on such forward-looking statements. Forward-looking
statements do not take into account the effect that transactions or
non-recurring items announced or occurring after the statements are made may
have on the business. Teranet disclaims any intention or obligation to update
any forward-looking statement even if new information becomes available, as a
result of future events or for any other reason, except as required by law.
These statements are subject to a number of risks described in the Risk
Factors section of the last quarter's MD&A, which is available at
www.sedar.com. Risk Factors may cause actual results to differ materially from
those contained in forward-looking statements.
For further information:
For further information: Tanis Robinson, Manager, Investor Relations,
(416) 643-1096, email@example.com