Bovar Inc. Announcement.CALGARY, Alberta--(BUSINESS WIRE)--Aug. 25, 1997--Bovar Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) ) The Board of Directors of BOVAR Inc. has announced a decision to focus on its waste management business and to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. itself of non-waste management assets and businesses. BOVAR is the owner and operator of Canada's most advanced waste treatment facility located near Swan Hills, Alberta Swan Hills is a town (incorporated January 1, 1967) in northern Alberta, Canada. It is located km ( mi) north of Whitecourt at the junction of Highway 32 and Grizzly Trail. Swan Hills is located in Municipal District of Big Lakes within census Division No. 17, Alberta. . This facility is a key element of Canadian waste management capability and the only permanent facility licensed for the destruction of PCBs. This business will be the Corporation's focus. The Corporation believes that the market price of its' stock does not reflect the value of the underlying businesses. The Board of Directors retained Coopers & Lybrand last June to perform a study on improving shareholder value. As disclosed on August 6, 1997, the Corporation has also been approached with an Offer to Purchase the environmental consulting Environmental consulting is often a form of compliance consulting, in which the consultant ensures that the client maintains an appropriate measure of compliance with environmental regulations. business. As a result of the above factors, the Board of Directors has made a decision to divest the non-waste management assets and businesses. "The Corporation feels that a more focussed direction would benefit our shareholders, our customers, our employees and other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ", says Monty (programming, abuse) monty - /mon'tee/ Any program with a ludicrously complex user interface that performs a trivial task. An example would be a menu-driven, button clicking, pulldown, pop-up windows program for listing directories. Davis, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BOVAR Inc. "Selling our viable process control equipment and air quality monitoring businesses at this time will generate the maximum value for the Corporation and will help investors assess the corporation purely as a waste management business. The Corporation will begin preparing a plan for their divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). and expects that the divestiture of assets will be accomplished over the next year." BOVAR Waste Management will focus its operations on re-starting its 8,000 tonne per year incinerator incinerator, furnace for burning refuse. The older and simpler kind of incinerator was a brick-lined cell with a metal grate over a lower ash pit, with one opening in the top or side for loading and another opening in the side for removing incombustible masses called in September and repairing and restarting its 35,000 tonne per year incinerator for operation at the beginning of next year. BOVAR Inc., listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol "BVR", is one of Canada's leading international providers of environmental and waste management products and services. BOVAR operates and is the owner of Canada's only fully integrated hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. treatment facility which is located near Swan Hills, Alberta. BOVAR's services are provided through BOVAR Waste Management, BOVAR Western Research and BOVAR Environmental. Monty L.Davis President & C.E.O. 403/235-8302 Daryl W. Ferko Vice President Finance & C.F.O. 403/235-8329 Re: BOVAR Inc.'s Decision To Divest Of Non-Waste Management Businesses August 25, 1997 Q: Why is BOVAR selling these business units? A: The Directors' decision was based on the recent stock price, a Coopers & Lybrand study, and an offer for the environmental consulting business. The process control equipment and air quality monitoring businesses, we feel, will be better valued as separate business units. They are not necessarily connected to the Waste Management business. BOVAR Inc. now will be concentrating on the waste management area, with the other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. divested to the benefit of BOVAR shareholders. Q. What is a brief description of the process control and air quality monitoring business? A. BOVAR Western Research is in the business of manufacturing and selling analytical instrumentation for process control and environmental monitoring. BOVAR Environmental is mainly in the environmental consulting business. That portion of the business is the subject of an offer letter and is currently in the due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. stage. The air quality monitoring business that is part of BOVAR Environmental, and the Malaysian joint venture for air and water quality monitoring, are not included in the business that is the subject of the offer letter, but are part of the assets that will be divested as a result of the Board decision this week. Q. Will this affect the operation of the Swan Hills plant? A. It should ensure the waste management business, and Swan Hills in particular, are the focus of BOVAR Inc. We fully intend to continue the operation of the Swan Hills Treatment Centre. Q. Will this make it easier for BOVAR to return the plant to the government? A. We don't see that this will have any effect on BOVAR's rights or abilities under its agreements with the government. Q. What is the plant's current status after the incident of last month? A. The plant is currently cleaning up the large incinerator which was damaged in July and preparing the small incinerator for start up, which hopefully will take place in September. We expect it will be year end before we have the large incinerator in operation. Q. With respect to the selling of these two subsidiaries, will any employees lose their jobs? A. Until the divestitures have taken place, it is very difficult to anticipate, but we don't expect any major job losses. Q. Do you have potential buyers? A. We don't currently have potential buyers, other than an offer for one portion of BOVAR Environmental. We have not sought buyers. That is part of the process that will take place in the immediate future. Q. Have you set asking prices? A. We have not yet set an asking price for these businesses; one unit is under offer. Q. What is BOVAR's financial condition? How much is the current shut down hurting? A. We have a substantial cash reserve in the bank - $18 million of that supports a performance bond to the government - the rest is readily available in cash. The current shutdown of the plant is certainly going to affect the profitability of the company in the second half of 1997. However, the damage is covered by property insurance and we have business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril for the plant. Q. Is this action in any way related to the recent operational problems at Swan Hills? A. It is not in any way related to the recent operating problem at Swan Hills. Coopers & Lybrand was retained to study ways of enhancing shareholder value in June of this year. CONTACT: Bovar Inc. Monty L. Davis, 403/235-8302 or Daryl W. Ferko, 403/235-8329 |
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