AEP Industries commences cash tender offer for up to 1,083,000 shares at $22.75 net per share.SOUTH HACKENSACK, N.J.--(BUSINESS WIRE)--Aug. 10, 1995--AEP Industries Inc. announced today that it has commenced a cash tender offer to purchase up to 1,083,000 shares of the company's common stock at a per share price of $22.75 in cash, upon the terms and subject to the conditions set forth in the Offer to Purchase dated Aug. 10, 1995, and the related Letter of Transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. (which together constitute the "Offer"). The closing bid price for the company's common stock on Aug. 2, 1995 (the last full trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. before the announcement of the offer) was $20.75 per share. The closing bid for the company's common stock on Aug. 9, 1995 was $22.00 per share. The 1,083,000 shares that the company is offering to purchase in the Offer represent approximately 18 percent of the shares outstanding as of Aug. 9, 1995, after giving effect to the previously announced purchase by the company from J. Brendan Barba, the chairman of the board, president and chief executive officer of the company, of an aggregate of 1,550,000 shares of the company's common stock for a cash purchase price of $21.04 per share. The offer is not conditioned upon any minimum number of shares being tendered. The offer is, however, subject to certain customary conditions. The offer, proration Proration A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered. period and withdrawal rights are scheduled to expire at 12:00 midnight, New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on Friday, Sept. 8, 1995, unless the offer is extended. Neither the company nor its board of directors makes any recommendation as to whether any stockholder should participate in the offer. Historically, the company has maintained relatively low debt levels, leaving the company under-leveraged. The board of directors believes that the interests of stockholders will be served by utilizing the company's excess borrowing capacity to afford stockholders an opportunity to sell a significant portion of their shares to the company. The offer is designed to afford to stockholders who are considering the sale of all or a portion of their shares an opportunity to sell such shares for a higher price than that available in the open market immediately prior to the announcement of the offer, without the usual transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). associated with market sales and, in the case of those holders who own less than 100 shares, without incurring any applicable odd lot discounts. Barba has agreed that none of the shares beneficially owned by him or any of his affiliates or over which he otherwise exercises dispositive dis·pos·i·tive adj. Relating to or having an effect on disposition or settlement, especially of a legal case or will. power will be tendered and sold to the company pursuant to the offer. The company has been informed by its directors and executive officers that they do not intend to tender shares owned by them pursuant to the offer. The company has entered into a $140 million loan facility with The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. (National Association) and Mellon Bank, N.A. to provide the company with funds to effect purchases pursuant to the offer, to refinance certain existing debt and to meet the future needs of the company's business. Bear, Stearns & Co. Inc. will act as dealer manager for the Offer and The Chase Manhattan Bank, N.A. will act as the depositary. AEP AEP - Application Environment Profile Industries manufactures and markets low density polyethylene Low-density polyethylene (LDPE) is a thermoplastic made from oil. It was the first grade of polyethylene, produced in 1933 by Imperial Chemical Industries (ICI) using a high pressure process via free radical polymerisation [1]. plastic film products throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in a limited number of foreign countries. Shares of the company's common stock are traded on The Nasdaq Stock Market's National Market under the symbol "AEPI." CONTACT: AEP Industries Inc. Barbara L. Brown, 201/807-2301 |
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