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Gold/Mining/Energy : Methanex (MEOHF) -- Ignore unavailable to you. Want to Upgrade?

To: Ciao who wrote (210)	8/8/2001 9:45:29 AM
From: Herb Duncan	Respond to of 213

VANCOUVER, Aug. 7 /CNW/ - Methanex Corporation intends to offer to purchase up to US$175 million worth of its common shares through a substantial issuer bid. This represents 29,166,666 common shares or 17.9% of Methanex's total issued and outstanding common shares, assuming Methanex purchases the maximum number of shares under the substantial issuer bid. Methanex currently has 162,501,266 common shares issued and outstanding. Methanex also intends to make a normal course issuer bid under which it may repurchase up to 11,455,241 common shares of the Company representing not more than 10% of the "public float" of the common shares. Pierre Choquette, President and CEO of Methanex commented, "These planned share repurchases are part of our commitment to return excess cash to shareholders. Our low-cost production facilities and leading market position combined with strong methanol pricing allowed us to generate almost US$400 million in cash from operations over the past year. Our cash balance is currently in excess of US$450 million and we have an undrawn US$291 million credit facility." The substantial issuer bid offer will be made to all shareholders to acquire common shares at a price in a range of US$6.00 to US$7.50 per share through a procedure known as a "modified dutch auction". The modified dutch auction allows shareholders to tender all or any portion of their common shares to Methanex at any price within the range. The actual purchase price paid by Methanex will be the price per share within the range that will allow Methanex to purchase common shares having a total acquisition cost of up to US$175 million. Subject to pro-rationing, all shareholders who tender their common shares at a price equal to or lower than the actual purchase price will receive the purchase price. All common shares tendered at a price higher than the purchase price will be returned to the shareholders. Shares that are purchased under the substantial issuer bid will be cancelled. The substantial issuer bid offer is expected to expire at 6:00 p.m., Toronto time, on September 13, 2001, unless extended by Methanex. Full particulars of the offer, including conditions of the offer and procedures for the tendering of shares will be contained in an issuer bid circular that is expected to be mailed to shareholders on August 8, 2001. Methanex's notice of intention to make the normal course issuer bid was filed and accepted by The Toronto Stock Exchange ("TSE") today. The bid will be carried out through the facilities of the TSE. Purchases under the bid will terminate on the earlier of August 9, 2002 and the date upon which Methanex has acquired the maximum number of common shares permitted under the bid or otherwise decides not to make further purchases. In accordance with applicable securities laws, Methanex will not be making any purchases under the normal course issuer bid until at least 20 business days after the expiry or termination of the substantial issuer bid. Purchases under the normal course issuer bid will be made from time to time at the then current market price of the Company's common shares as traded on the TSE and the common shares purchased will be cancelled. On August 1, 2000, Methanex commenced a normal course issuer bid through the facilities of the TSE. Pursuant to that bid, which was completed on December 7, 2000, Methanex acquired 12,515,532 common shares at an average price of Cdn.$7.35 per share. NOVA Chemicals Corporation, which currently holds 28.9% of Methanex's common shares, has indicated that it does not intend to tender any of its shares to the substantial issuer bid or sell any of its shares during the course of the normal course issuer bid. An independent committee of the Board of Directors of Methanex was struck to examine the proposed bids and to make a determination as to whether or not such bids would be in the best interest of Methanex and its shareholders other than NOVA. Methanex believes that purchasing its shares under the substantial and normal course issuer bids is in the best interests of its shareholders and represents an effective use of Methanex's financial resources. Methanex intends to finance the purchase of common shares under the bids with cash on hand. CIBC World Markets Inc. will act as Dealer Manager under the substantial issuer bid. Raymond James Ltd. has been appointed as broker to make purchases under the normal course issuer bid. Methanex is the world's largest producer and marketer of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH." Methanex can be visited online at www.methanex.com. %SEDAR: 00001896E -30- For further information: Inquiries: Chris Cook, Manager, Investor Relations, Phone: (604) 661-2600 To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw. METHANEX CORPORATION has 47 releases in this database.