March 8, 2007 at 11:39 am #4040
Wednesday March 7, 9:21 am ET
WEST PALM BEACH, Fla.–(BUSINESS WIRE)–Oxbow Carbon & Minerals Holdings, Inc. (Oxbow) announced today that it has informed the Board of Trustees of Great Lakes Carbon Income Fund (the Fund) (TSX:GLC.UN – News) that it is offering to purchase all of the assets of the Fund for an aggregate price that results in unitholders of the Fund receiving C$13.00 in cash per unit. This proposal represents a premium of 12.1% over the amount of C$11.60 per unit that would be received by unitholders in the transaction proposed by Rain Commodities on February 4, 2007. The Fund has 48,637,905 units outstanding on a fully-diluted basis resulting in an equity value of in excess of C$632 million (US$537 million). On a fully diluted basis, including equity of a subsidiary and the assumption of GLC’s third party debt, the transaction has an enterprise value of approximately C$820 million (approximately US$700 million).
“Our proposal is clearly a superior proposal to the transaction proposed by Rain Commodities, and we are confident that the Board of Trustees of the Fund and the Fund’s unitholders will find our all-cash proposal of $13.00 per unit to be a compelling one,” said William I. Koch, Chief Executive Officer of Oxbow. “We have advised the Trustees of the Fund that Oxbow is ready, willing and able to purchase the assets of the Fund on identical terms as Rain Commodities has proposed, except we are willing to pay a significantly higher price,” said Mr. Koch.
Oxbow’s proposal expires on March 14, 2007 and is contingent upon the Fund executing an acquisition agreement with Oxbow in substantially the same form as the agreement between the Fund and Rain Commodities. The proposal is not contingent upon financing or upon Rain Commodities selling its 20 percent interest in GLC Carbon USA Inc., a subsidiary of Fund, to Oxbow. Oxbow’s proposed acquisition of the assets of the Fund would require the approval of the Fund’s unitholders and could be completed in mid-April 2007.
Oxbow Carbon & Minerals Holdings, Inc. is part of the Oxbow Group, a private energy company based in West Palm Beach, Florida. It is owned and operated by William I. Koch, the last American to successfully defend the America’s Cup. The company was founded by Koch in 1984. Under his leadership, the company has become the world’s largest marketer of petroleum coke, a by product of the oil refinery process. Petroleum coke is used in power generation; concrete kilns, sugar mills and aluminium manufacturing. The company trades in other carbon and industrial products such as coal, gypsum, bauxite, and clinker. Oxbow also owns one of the most productive underground coal mines in the nation, producing 6.5 million tons of super-compliant coal annually, and is developing an extensive natural gas reserve.
Contact:Oxbow Corporation, West Palm BeachCorporate Communications:Brad Goldstein, 561-697-4300 (Ext. 822)561-310-4642 (mobile)
March 8, 2007 at 11:40 am #7443
The US (& Worlds) largest merchant calcining company just received a competiting bid from Oxbow that is 12% premium over the Rain Commodities Feb 2007 offer. The Oxbow bid will expire at the end of next week and does not require Rain to sell its current 20% interest in GLC.
Charles E. Randall
Pace Global Energy Services
808 Travis Street Suite 1107
Houston, TX 77002
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