Coalcorp Announces Implementation of Shareholder Rights Plan
TORONTO, Nov. 19 /CNW/ - Coalcorp Mining Inc. (TSX-CCJ) announced today
the implementation of a shareholder rights plan. The rights plan is designed,
to the extent possible, to ensure the fair treatment of Coalcorp's
shareholders in the event of a take-over bid and to provide Coalcorp's board
of directors and its shareholders with adequate time to evaluate any such
take-over bid and, if appropriate, to seek out alternatives to maximize
shareholder value.
The Toronto Stock Exchange has accepted notice of the rights plan subject
to, among other conditions, confirmation of the plan by the shareholders of
Coalcorp on or prior to May 19, 2008.
Coalcorp's rights plan is similar to those adopted by other Canadian
public companies and is not intended to prevent take-over bids. As long as a
bid meets certain requirements intended to protect the interests of all
shareholders, the provisions of the rights plan will not be invoked. A bid
will be a permitted bid if it is made by way of take-over bid circular,
remains open for a minimum of 60 days and otherwise complies with the
permitted bid provisions of the rights plan. If a bid is not a permitted bid,
then the rights plan will be invoked by the acquisition of 20% or more of the
outstanding common shares of Coalcorp by any person (including persons related
to or acting jointly and in concert with such person).
Under the provisions of the rights plan, one right was issued for each
common share outstanding as of November 19, 2007. The rights will trade
together with the common shares and will not be separable from the common
shares or exercisable unless and until a take-over bid is made which is not a
permitted bid. The rights will entitle shareholders, other than the person
making the take-over bid (and any persons related to or acting jointly and in
concert with such person), to purchase additional common shares at a 50%
discount to the then prevailing market price.
A copy of the rights plan may be obtained on SEDAR at www.SEDAR.com.
Coalcorp is a coal mining, exploration and development company with
interests in the La Francia and La Caypa coal mines and related infrastructure
projects and a number of coal exploration properties, all located in Colombia.
Further information can be obtained by visiting our website www.coalcorp.ca.
%SEDAR: 00004043E
For further information: Peter Volk, General Counsel and Secretary,
(416) 360-4653 |
