FORD OF CANADA BOARD OF DIRECTORS UNANIMOUSLY APPROVES BUYOUT OF SHAREHOLDERS AT (CDN) $185 PER SHARE
OAKVILLE, Ontario, July 5 /PRNewswire/ -- Ford Motor Company of Canada Ford Motor Company of Canada, Limited is the manufacturing and sales arm of Ford Motor Company for Canada. It was founded in 1904 in Walkerville, Ontario by Gordon McGregor as President and Henry Ford as Vice-President. , Limited ("Ford of Canada") announced today that, in response to a revised proposal received from Ford Motor Company ("Ford"), its Board of Directors has unanimously approved a transaction involving the amalgamation of Ford of Canada with Ford Investment Holdings Inc. pursuant to which shareholders of Ford of Canada, other than Ford, would exchange their common shares for preference shares to be immediately redeemed for (Cdn) $185 per share in cash.
The special committee of independent directors of Ford of Canada, which was appointed to consider the original amalgamation proposal received from Ford, retained Wood Gundy Inc. to prepare an independent formal valuation of Ford of Canada's common shares. Ford submitted its revised proposal following extended and comprehensive discussions with the special committee and Wood Gundy.
Wood Gundy has concluded that the fair value of the common shares is in the range of (Cdn) $170 to (Cdn) $200 per share, and that the consideration of (Cdn) $185 per share offered in the proposed amalgamation is fair from a financial point of view to the public shareholders of Ford of Canada.
The special committee unanimously recommended that the Board of Directors of Ford of Canada approve the amalgamation at the price of (Cdn) $185 per share, which represents a 48 percent premium over the market price of the Ford of Canada common shares immediately prior to the announcement on April 26, 1995 of Ford's original offer of (Cdn) $150 per share.
The transaction involves Ford of Canada continuing under the Ontario Business Corporations Act and then amalgamating with Ford Investment Holdings Inc., a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of Ford Ensite International Inc. ("Ensite"). Upon completion of the transaction, Ford of Canada would thereby become a wholly owned subsidiary of Ensite. Ensite is a wholly owned subsidiary of Ford primarily engaged in automotive component manufacturing in Canada.
The effective date of the amalgamation is expected to be September 1, 1995, immediately following which time the public shareholders will receive their cash payments. Following the amalgamation on September 1, 1995, an amalgamation of Ford of Canada and Ensite is contemplated. This second amalgamation would enable Ford to achieve efficiencies in its Canadian automotive operations consistent with the objectives of Ford 2000 -- the previously announced reorganization of Ford's worldwide automotive operations.
Both the continuance and the initial amalgamation are subject to the approval of Ford of Canada shareholders of record as at July 18, 1995 at a special meeting of Ford of Canada shareholders to be held on or about August 22, 1995.
Ford owns a sufficient number of Ford of Canada's common shares (approximately 94 percent) to approve both the continuance and the amalgamation. Applicable regulatory policies do not require a separate vote of minority shareholders. A management proxy circular containing full details of the proposed transactions will be mailed to shareholders as soon as practicable.
/CONTACT: Tony Fredo, Vice President, Public Affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. , of Ford of Canada, 905-845-2511, ext. 1161/
CO: Ford Motor Company of Canada, Limited ST: Ontario IN: AUT AUT n abbr (BRIT) (= Association of University Teachers) → sindicato de profesores de universidad
AUT n abbr (Brit) (= Association of University Teachers) → SU: TNM TNM tumor-nodes-metastasis; see under staging.
tumor, nodes and metastases; a system of cancer staging (see TNM staging).
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