Cara Announces Bid To Increase Stake In Second Cup.Business Editors TORONTO--(BUSINESS WIRE)--Aug. 13, 2001 Cara Operations Cara Operations Limited is a Canadian company that provides catering services to airlines and operates several restaurant and coffee shop chains including: Harvey's, Swiss Chalet, Kelsey's , Milestones and Montana's. The company is based across from Lester B. Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.) (TSE:CAO.A) today announced its intention to make a cash offer to purchase up to 3 million of the outstanding common shares of The Second Cup Ltd. (TSE:SKL SKL Conservative Peasants Party (Poland) SKL State Key Laboratory SKL Simple Key Loader SKL Svenska Kriminaltekniska Laboratoriet (Swedish National Criminal Forensics Laboratory) ) at a price per share of $7.00. This price represents a premium of 16.7% to Second Cup's closing market price of $6.00 on Friday, August 10, 2001 on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . The 3 million shares represent approximately 53% of shares of Second Cup not currently held by Cara. There are currently approximately 9.36 million shares of Second Cup outstanding of which Cara currently holds approximately 3.66 million shares (39%). Upon completion of the offer, Cara will hold up to 6.66 million shares representing approximately 71% of the outstanding shares of Second Cup. In accordance with applicable securities regulatory requirements, it is expected the Second Cup Board will establish a committee of independent directors which will supervise a valuation process, review the terms and conditions of the Cara offer and report on these to the Board of Directors of Second Cup. Cara will mail its offer to all registered shareholders of Second Cup as soon as possible after the valuation has been completed and the independent committee has reported to the Board of Second Cup. Gabe Tsampalieros, President and Chief Executive Officer of Cara, commented in announcing the bid: "We are making this offer to provide stability in the ownership of Second Cup and allow its management to focus solely on the Company's operations. In addition, the offer will provide a significant measure of liquidity for interested Second Cup shareholders." With annual system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. in excess of $1.6 billion, Cara Operations Limited is one of Canada's leading foodservice companies, providing employment for more than 28,000 Canadians in its owned and franchised operations. Cara's wholly owned businesses include Harvey's, Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. , Cara Air Terminal Restaurants, Cara Airport Services, Cara Health Services health services Managed care The benefits covered under a health contract and Summit Food Service Distributors. Cara has a 61% ownership of Kelsey's International Inc. which operates the Kelsey's Neighbourhood Bar & Grill, Montana's Cookhouse Montana's Cookhouse is a Canadian restaurant headquartered in Mississauga, Ontario. There are restaurants located in Canada from coast to coast in addition to US locations in Michigan and New York State. Saloon and (as a franchisee) Outback Steakhouse restaurant brands. Cara is also the largest shareholder (38%) of The Spectra Group of Great Restaurants Inc. (TSE:SPA, SPA.A), a western-Canadian-based multi-concept restaurant operator, whose popular brands include the upscale casual chain of Milestones restaurants and the Bread Garden bakery/cafe concept. |
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