Sunoma Increases Orbit Bid To $1.77 Orbit Board Recommends Acceptance
Canada Newswire -- January 07, 1998 09:27 am
CALGARY, Jan. 7 /CNW/ - Sunoma Energy Corp.
and Orbit Oil & Gas Ltd. jointly announced an
agreement providing for an increase in Sunoma's bid to
$1.77 cash per Orbit common share. Following an
intensive process of soliciting alternative proposals to
maximize shareholder value and based on an assessment
of current market conditions, Orbit's board of directors
confirms that it now recommends that Orbit
shareholders tender their Orbit common shares to
Sunoma's amended offer.
Humboldt Capital Corporation and officers and
directors of Orbit have irrevocably agreed to tender and
not withdraw their approximately 12,600,000 Orbit
common shares, including those acquired on exercise of
options (representing 27% of Orbit's shares on a fully
diluted basis) to Sunoma's offer.
The board of directors of Orbit has also waived the
application of its shareholder rights plan to Sunoma's bid
and Orbit has agreed not to solicit any new or alternative
bid or other transaction. Orbit has also agreed to
provide for an orderly transition of the board and senior
management positions in the event Sunoma acquires at
least 50.1% of the Orbit shares.
Orbit shareholders who have tendered by 5:00 p.m.
today will receive the increased bid price of $1.77 per
share, assuming at least 50.1% of the Orbit common
shares (other than those already owned by Sunoma) on
a fully diluted basis are tendered to the bid.
Sunoma and Orbit will be sending Sunoma's formal
notice of variation and Orbit's directors' circular relating
to the amendment to Orbit shareholders as early as
possible. Shareholders who do not tender their Orbit
shares by today will be entitled to tender their Orbit
shares up to ten days after the sending of the notice of
variation by Sunoma.
Sunoma encourages Orbit's shareholders to tender their
Orbit shares to Sunoma's bid today in order to provide
for the earliest possible payment for tendered shares.
For further information: Mr. Rick MacDermott,
President and CEO, Sunoma Energy Corp., (403)
262-5553; Mr. Robert W. Lamond, Chairman,
President and CEO, Orbit Oil & Gas Ltd., (403)
750-4400
09:12 ET
CNW 09:09E 07-JAN-98
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