QUÉBEC CITY, Oct. 29 /CNW Telbec/ - Cossette Inc. today responded to the press release of Cosmos Capital Inc. ("Cosmos") issued yesterday announcing its intention to launch an unsolicited offer to acquire all of the outstanding subordinate voting shares of Cossette for $5.25 in cash per share. A price of $5.25 per Cossette share represents a discount of 9.5% to the closing share price on October 28th.
Consistent with its obligations to maximize value to shareholders, Cossette's Board of Directors will consider the offer, when launched. Shareholders will be promptly notified of any recommendation by the Board of Directors through a news release and circular in accordance with applicable securities laws. Cossette's Board of Directors remains committed to delivering value for shareholders and believes that the strategic review process initiated on July 20, 2009 in response to the unsolicited and non-binding proposal of Cosmos clearly demonstrates this commitment.
Cossette recommends that its shareholders defer making any decision until its Board of Directors has had an opportunity to fully review Cosmos' expected offer, compare it to the results of its strategic review process and make a formal recommendation as to the merits of that expected offer. All written expressions of interest regarding a potential acquisition of Cossette that were received by the Company during the first phase of its strategic review process are financially superior to Cosmos' intended bid of $5.25 per share.
Update on Cossette's Strategic Review Process
Since the update by Cossette on October 16, the second phase of the strategic review process with certain potential acquirers has progressed as expected. Potential acquirers were given the opportunity to conduct further business, financial and legal due diligence and attend management presentations. The strategic review process is now at an advanced stage.
The Company cautions shareholders that there is no assurance that the Company will receive a definitive proposal with respect to a potential acquisition as a result of its strategic review process. Also, even if a definitive proposal is received, there is no assurance that such proposal will be recommended by the Special Committee or the Board of Directors or that such proposal will be implemented.
Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,485 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.
SOURCE COSSETTE INC.
For further information: For further information: Financial Analysts only: Martin Faucher, Vice-President and Chief Financial Officer, (418) 521-3784; Investors: Francis Trudeau, Director, Acquisitions and Investor Relations, (514) 282-4633; Medias: Sylvie Isabelle, Optimum Public Relations, (418) 521-3184; Source: Cossette Inc., www.cossette.com