Brascan Announces Plans To Purchase Minority Shareholdings Of Great Lakes Power Inc.Business Editors
TORONTO--(BUSINESS WIRE)--Dec. 12, 2000
Robert Harding, Chairman of Brascan Corporation (AMEX AMEX
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1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). :BNN.), today announced Brascan's intention to make an offer to the minority shareholders of Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). Power Inc. to purchase their common shares in exchange for 0.905 of a Brascan Class A common share, equivalent to $20.36 at the closing price of Brascan's shares on December 11, 2000.
Alternatively, shareholders will have the option to receive $19.00 per share in cash.
Brascan currently owns approximately 96% of Great Lakes' common shares and recently reached agreement with shareholders owning 1,608,910 common shares, representing 37% of the minority shareholdings in Great Lakes, to accept the offer. This offer is subject to receipt of all necessary board approvals, as well as approval of Great Lakes' shareholders.
Shareholders of Great Lakes who elect to receive Brascan Class A shares will benefit from an improved dividend yield, superior liquidity for their investment and a tax-free share exchange.
It is Brascan's intention to continue repurchasing its own shares in the market to avoid any dilution to Brascan's existing shareholders as a consequence of this offer. Approximately 3.9 million Brascan Class A shares could be issued under this offer if all shareholders elect to receive shares of Brascan in exchange for their Great Lakes shares rather than the cash alternative.
Mr. Harding commented that "These transactions will further simplify Brascan's ownership of its principal production facilities and increase its direct access to the operating cash flows Operating cash flow
Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of its electric power operations."
Great Lakes generates, transmits and distributes electricity in northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing.
Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it and western Quebec, and has ownership and operating interests in other power generating facilities in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. .
Brascan Corporation and its affiliates provide a diversified range of products and services to their customers and clients. The group employs over 50,000 people in managing and operating more than 120 major production facilities and properties, located mainly in Canada, the United States and South America.
For more information, please contact one of the following individuals or visit our web site at www.brascancorp.com