VICTORIAVILLE, QC, May 24, 2012 /CNW Telbec/ - Gestion G. Aubert Ltée, a large shareholder in CVTech Group Inc. (TSX:CVT), has responded to demands by CVTech's management to retract a proxy circular that describes concerns about the company's mediocre performance and nominates seven new directors to CVTech's board.
Describing the demands as "a waste of shareholder dollars", Mr. Guy Aubert, who controls Gestion G. Aubert, said: "This tactic seeks to prevent legitimate voting choices and interfere with the democratic exercise of shareholder rights".
CVTech's management has threatened legal action if the proxy circular is not retracted.
Mr Aubert added: "The current board and management are clearly trying to deflect attention from CVTech's inability to deliver on promises made to shareholders. The result has been CVTech's share price declining by more than 25% over the past three years. Our team intends to stay the course and seek support for an infusion of new energy in CVTech's leadership."
Mr. Aubert, who has been a member of the current board since 2005 and currently beneficially owns 13.8% of CVTech's outstanding shares, is one of the seven nominees. Mr. Aubert is the former majority owner and operator of Thirau Ltd. and its subsidiaries, Quebec based J.J.L. Déboisement and Connecticut based Thirau LLC, all acquired by CVTech in 2005, and as a group, the largest contributor of CVTech's revenues.
The seven nominees for the new board, if elected, intend to take decisive action to improve CVTech. All seven nominees have been senior executives and bring diverse expertise that would provide strong support for the new strategic direction of CVTech.
The key points of Gestion G. Aubert Ltée's "value-enhancing plan" are to:
- Pursue the sale of the CVT Systems segment. This business has been a drain on the company's resources for an extended period..
- Seek and explore value-creating acquisitions in electrical construction services.
- Review and cut overhead costs.
- Use cash to fuel operational growth, repay debt and fund potential acquisitions.
- Instill a new corporate culture of accountability by improving communications with shareholders using, for example, quarterly conference calls to discuss financial results and the progress of the proposed value enhancing plan for CVTech and its shareholders. All shareholders, large or small, would be welcomed at these calls.
- Improve transparency as per industry norms by undertaking to provide more information concerning the operating results, and costs associated with the holding company head office.
CVTech's directors will be elected at the annual meeting in Montreal on May 30, 2012.
To support Gestion G. Aubert's plans and bring new energy to CVTech,
shareholders are urged to vote their BLUE proxy before
the May 28, 2012 voting deadline of 10:30 a.m. (EST).
The seven Nominees are:
|Shareholders should call Kingsdale Shareholder Services toll-free at 1-888 518 1558 or call collect at 416-867-2272 for assistance in voting your BLUE proxy.|
For further information:
For more information, please go to: www.changecvtech.com .
Guy Hurd, Director, Media Relations, Renmark Financial Communications firstname.lastname@example.org,
514 939 3989 x1224
Vice-President - Kingsdale Communications Inc.
416 867 2304