Buhler Industries Inc. (TSX: BUI) has received an offer from the Russian Combine Factory Rostselmash Ltd. to purchase 80% of the outstanding common shares as follows.
51% of the outstanding common shares on or before September 30, 2007 at C$7.50
7.25% of the outstanding common shares on or before September 30, 2009 at C$7.60
7.25% of the outstanding common shares on or before September 30, 2010 at C$7.60
7.25% of the outstanding common shares on or before September 30, 2011 at C$7.60
7.25% of the outstanding common shares on or before September 30, 2012 at C$7.60
The offer stipulates that Buhler Industries Inc. is to pay a break fee should it accept a competing offer. The break fee equals 50% of the incremental premium over C$7.60 per share with a minimum of C$5,000,000.
The Board of Directors is viewing the offer positively and has struck a committee to study the comprehensive purchase agreement. A recommendation to follow.
Combine Factory Rostselmash Ltd is a major combine manufacturer located in Rostov-on-Don, Russia that produces over 17% of the total world production of agricultural combines.
For more information visit www.rostselmash.com.
Buhler Industries Inc. (TSX: BUI) designs, manufactures and distributes agricultural equipment. The products are marketed under the Buhler® brand name, including the Farm King®, Allied®, Inland® and Versatile® product lines. Buhler Industries Inc. operates ten modern manufacturing and eight distribution centers totaling over 1.6 million square feet of facilities in the United States and Canada and employs more than 800 people. For more information visit www.buhler.com.
Ossama A. Abouzeid, Ph.D., MBA President and CFO
Phone: (204) 654-5710
E-mail: oabouzeid@buhler.com
Trading symbol: BUI