Canada Southern Maintains Support for Canadian Oil Sands Bid
The board of Canada Southern Petroleum Ltd. on Friday commented on Canadian Superior Energy Inc.'s announced intention to amend its offer to purchase all outstanding common shares of Canada Southern. On July 26, Canadian Superior issued a press release announcing an intention to make a revised offer. According to Canada Southern, however, the prospective bidder has yet to file formal documents with Canadian or U.S. securities regulators that would define the details of key provisions of that proposed revised offer.
“Without a formal amended offer from Canadian Superior, the board is not in a position to provide a formal recommendation to shareholders, other than to reiterate the board's strong and unanimous recommendation that shareholders accept the Canadian Oil Sands offer and tender their shares to it,” said Richard C. McGinity, Chairman of Canada Southern’s board.
“Based on what we have read in Canadian Superior's press release, and with the benefit of the advice we have received from our legal and financial advisors, Canadian Superior’s proposed amended offer appears highly speculative, lacking in clarity, certainty, and credibility and, by its very nature, impossible to value,” McGinity added. “Whatever value one might place on the ‘net profit interest,’ Canadian Superior appears to be proposing to use Canada Southern's own assets to pay for the company, and we fail to see how that serves the best interests of our shareholders.”
Canada Southern also reminded its shareholders that the current Canadian Oil Sands offer of US$13.10 per share, all cash, expires at 8 a.m. Mountain Time on August 1, adding that there can be no assurance that Canadian Oil Sands will extend its offer beyond that date.
If shareholders have already tendered to the current Canadian Superior offer, the board recommends that shareholders withdraw them immediately. For assistance in doing so, shareholders are urged to contact The Proxy Advisory Group at toll free 1-866-678-1770.
The Canada Southern Board, together with its legal and financial advisors, will thoroughly review any revised Canadian Superior offer if and when formal documents have been filed with Canadian and U.S. regulators. After this evaluation, the Canada Southern Board will issue a Notice of Change to the Directors’ Circular originally dated June 26, 2006 and file related amendments to its Solicitation/Recommendation Statement on Schedule 14D-9 that will contain important information, including the Board’s recommendation with respect to any Canadian Superior offer.
Canada Southern Petroleum Ltd. is an independent energy company based in Calgary, Alberta, Canada. The company is engaged in oil and gas exploration and development, with its primary interests in producing properties in the Yukon Territory and British Columbia, Canada. The company also owns varying interests in seven Significant Discovery Licenses located in the Arctic Islands in Northern Canada.
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