ATS plans split-off via IPO of solar unit ......................................................
Following a review of available strategic alternatives, ATS Automation Tooling Systems Inc., Cambridge ON, will pursue an initial public offering (IPO) of the common shares of a new subsidiary to be formed to hold the assets of the firm’s Solar Group.
The new subsidiary will be named Photowatt Technologies and is expected to include the company's investments in Photowatt International in France and in Spheral Solar Power (SSP), ATS says.
"An IPO of Photowatt Technologies is the principal mandate approved by our board of directors," Ron Jutras, ATS President and CEO, says. "For that reason, we continue to aggressively prepare Photowatt Technologies for an IPO.”
“However, at the same time, the board has stated clearly that it is open to considering alternative transactions during this preparatory period. I believe this is a wise strategy that is in the best interests of our shareholders.”
An offering of Photowatt shares is expected to commence in the third, or potentially the fourth quarter of calendar 2006 and ATS says it intends to retain both Canadian and US underwriters.
"Looking forward, we have much to accomplish in a very short time, but I believe a fall launch is realistic given the legal and accounting requirements associated with separating our solar assets into a new subsidiary," Jutras says. "This timetable takes into account a complex corporate reorganization, related tax and accounting activities, and applicable securities commission reviews.”
"In the meantime, our operational objective for Photowatt Technologies this year is to continue to pursue opportunities in conventional solar technology through Photowatt International in France and overcome the significant challenges and risks associated with proving out the commercial manufacturability of the new SSP products," he adds.
atsautomation.com
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