Kelsey's retains HSBC Securities in connection with Cara proposal
TORONTO, Feb. 26 /CNW-PRN/ - (TSE:KSY - news): Kelsey's International Inc. announced today that its Special Committee of
Independent Directors has retained HSBC Securities as its financial advisor to prepare and provide the Special Committee with an
opinion as to the fairness, from a financial point of view, of the proposal received last week from Cara Operations Limited.
On February 15, 1999, Cara announced that it had submitted a proposal to the board of directors of Kelsey's whereby, subject to certain conditions, Cara would acquire
all of the outstanding common shares of Kelsey's other than those owned directly or indirectly by Paul Jeffery, Founder, Chairman and Chief Executive Officer of
Kelsey's and Nils Kravis, President and Chief Operating Officer of Kelsey's, in consideration for $2.55 cash per share. Cara also announced that it had entered into an
agreement with Messrs. Jeffrey and Kravis pursuant to which each of them would, subject to certain conditions, support Cara's proposal. Following the transaction,
which has been proposed to be effected by an amalgamation of Kelsey's with a wholly owned subsidiary of Cara, and an additional $10 million equity investment by
Cara, Kelsey's would be owned as to approximately 60% by Cara and as to the remaining approximately 40% by Messrs. Jeffrey and Kravis.
The Special Committee has been constituted to, among other things, review the Cara proposal and negotiate the terms and conditions thereof with Cara and hopes to be
in a position to communicate the results of these activities to shareholders by the beginning of April 1999.
SOURCE: Kelsey's International Inc. |
