Vecima will return $1.00 / shr
VICTORIA, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2013) - Vecima Networks Inc. ("Vecima" or "the Company") ( VCM.TO), a leading designer and manufacturer in the broadband cable and wireless network infrastructure market, announced today that it has completed its previously announced review of strategic alternatives to maximize shareholder value. This review concluded with the Board of Directors today authorizing the Company to seek shareholder approval to permit a special cash distribution to common shareholders, in the form of a return of capital, of $1.00 per share.
Vecima began its review of strategic alternatives in August 2012. Vecima evaluated a range of alternatives. The Board of Directors have determined that, at this time, it would be in the best interest of Vecima to make the proposed special cash distribution to common shareholders, in the form of a return of capital, and to continue focusing on its core business of designing and manufacturing broadband access products.
The proposed special cash distribution, in the form of a return of capital, is conditional upon the Company's shareholders approving a special resolution to reduce the stated capital of the common shares. Dr. Surinder Kumar, Dr. Hugh Wood and their respective holding companies, which collectively hold approximately 78.2% of the outstanding shares of the Company, have advised Vecima that they intend to vote their shares in favour of the special resolution. The Company plans to hold the shareholder meeting to consider the special resolution on March 11, 2013. If the return of capital is approved by shareholders, it is expected the special cash distribution will be paid to shareholders on or about March 27, 2013.
"We are pleased to be in a position to announce this proposed special cash distribution," said Dr. Surinder Kumar, Chairman and Chief Executive Officer of Vecima. "A range of strategic alternatives were considered, but in the end, we believe that the proposed special cash distribution, in the form of a return on capital, and renewed focus on the Company's core business provided the greatest potential to maximize shareholder value. Following the proposed distribution, we will have a strong balance sheet and will continue to explore opportunities to maximize shareholder value, including the possibility of future dispositions of non-core assets and cash dividends or distributions." |
