Tanganyika Adopts Shareholder Rights Plan,
Smart move and with the value of the company relative to the return once production starts a takeover bid could be in the mail so to speak. Arakis did the same thing if I recall, prior to Lundins bid.
VANCOUVER, BRITISH COLUMBIA 5 Nov
Tanganyika Oil Company Ltd. (the ``Company') is pleased to announce the adoption, subject to applicable shareholder and regulatory approval, by its Board of
Directors of a Shareholder Rights Plan. The Rights Plan is designed to encourage the fair treatment of shareholders in connection with any takeover bid for the Company.
The Rights Plan will provide the Board and the shareholders with more time to fully consider any unsolicited takeover bid for the Company without undue pressure, it will
allow the Board to pursue, if appropriate, other alternatives to maximize shareholder value, and it will allow additional time for competing bids to emerge.
To implement the Rights Plan, one Right has been issued by the Company pursuant to the Rights Plan in respect of each common share of the Company outstanding at
5:00 p.m. (Vancouver time) on October 21, 1999. For administrative convenience, the Rights will trade with the common shares and will be represented by the
certificates representing common shares. On the occurrence of certain triggering events, including the acquisition by a person or group of 20% or more of the votes
attached to all outstanding voting shares of the Company in a transaction not approved by the Board of Directors, the Rights will entitle holders (other than the acquiring
person or group) to acquire shares of the Company at a 50% discount to the market price. The Rights are not triggered by purchases of voting shares made pursuant to a
``Permitted Bid'. A Permitted Bid is defined as a takeover bid made by Takeover Bid Circular and made to all holders of voting shares wherever resident and must be
open for at least 60 days and more than 50% of the voting shares (other than the acquiring person or group) must be deposited under the bid and not withdrawn before
any share may be taken up and paid for and, if 50% of the voting shares are so deposited and not withdrawn, an announcement of such fact must be made and the bid
must remain open for a further 10 business days. |
