PORT HOPE, ON, Aug. 28 /CNW/ - Viceroy Homes Limited (the "Company")
announced today that it has been informed that Joint Stock Company Open
Investments ("OPIN"), a real estate development and investment company based
in Moscow, Russia, intends to make a proposal to the Board of Directors of the
Company to take the Company private.
OPIN has informed the Company that it has entered into an agreement with
Viceroy Construction (1984) Limited, Gaylord G. Lindal, Christopher H. Lindal
and Fred Haas (collectively, the "MVS Shareholders"), the holders of all the
outstanding Class B Multiple Voting Shares of Viceroy, whereby the MVS
Shareholders would continue as shareholders of Viceroy after the going private
transaction is completed. Among other things, the agreement provides that,
subject to certain conditions including the execution of a shareholders'
agreement after the approval of the plan of arrangement, they will vote their
Class B Multiple Voting Shares in favour of the transaction.
As part of the proposed transaction, OPIN (through an affiliated entity)
would acquire the outstanding Class A Subordinate Voting Shares of Viceroy for
C$4.25 cash per share, which represents an approximately 37% premium over the
C$3.10 closing price of the Class A Subordinate Voting Shares on the Toronto
Stock Exchange on August 27, 2007, and an approximately 37% premium over the
volume weighted average trading price over the past three months.
The Board intends to form a special committee to review any such proposal
and the Company will make a further announcement at a later date.
Founded 52 years ago, Viceroy Homes is a leader in pre-engineered housing
that offers high-quality building designs and materials combined with lower
cost and reduced on-site construction time. Viceroy is the largest supplier of
Canadian housing technology to a growing export market providing superior
housing solutions for builders and developers around the world. The Company
has vertically integrated manufacturing facilities located in Ontario and
British Columbia. Viceroy's Class A Subordinate Voting Shares trade on the
Toronto Stock Exchange under the symbol VHL.A.
For further information:
For further information: William R. Simpson, Vice-President, Finance and
Secretary-Treasurer, (905) 885-8600 - Ext. 220, www.viceroy.com