3/31/00 - Midnorthern Appliance Inc. Mails Offer For Shearhart Corporation
SHEARHART CORP ("SHW-V") - Midnorthern Appliance Inc. Mails Offer For Shearhart Corporation
Shearhart Corporation and Midnorthern Appliance Inc. announced the commencement of Midnorthern's offer to purchase for cash all of the outstanding common shares of Shearhart Corporation at a price of $1.58 per share. If all securities are tendered, the value of the offer is approximately $14.2 million.
The offer is being made pursuant to the agreements previously announced in December, 1999, pursuant to which certain shareholders of Shearhart owning 6,304,114 shares (representing approximately 70% of the outstanding shares of Shearhart) agreed to deposit their shares to an offer to be made by Midnorthern for all of the shares of Shearhart.
A take-over bid circular containing the details of the offer together with a directors' circular recommending acceptance of the offer are being mailed to all registered holders of the securities this day. The offer expires at 5:00 p.m. (Toronto time) on May 1, 2000, unless extended.
The offer is conditional upon, among other things, at least 90% of the outstanding common shares being deposited and not withdrawn from the offer.
The depositary under the offer is CIBC Mellon Trust Company in Toronto.
Shearhart operates 16 retail appliance stores across southern Ontario under the name "Home & Rural", Canada's leading independent retailer of appliances.
Midnorthern, a privately held Canadian corporation, was founded in 1959 and for the past forty years has been the industry leader in major home appliance sales to the new construction and property management trade. In addition, Midnorthern operates two retail stores in Toronto and has two franchise locations in St. Catharines and Niagara Falls. TEL: (416) 638-7311
Midnorthern Appliance Inc.
Jordan Gnat, Executive Vice President TEL: (416) 867-9099
Global Capital Partners Inc. EXT: 222
Kevin Wilson EXT: 223
Jonathan Edgett
For Shearhart Corporation
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