The offer price of $54 per share represents a 4.09% discount to the closing price of the Canadian Tire Class A Non-Voting shares on the TSX on Aug. 19, 2009 ($56.30), the day prior to the date of the offer.
Canadian Tire recommended that shareholders not tender [image-nocss] their shares in response to TRC's unsolicited mini-tender offer. TRC has made numerous unsolicited mini-tender offers for shares of other companies. Mini-tender offers are widely disseminated offers to purchase a small percentage of a company's shares at a price below the current market price which avoid most of the filing, disclosure and procedural requirements applicable to most bids under Canadian securities legislation.
Canadian Tire is in no way associated with TRC, its offer or the offer documentation.
Shareholders who are considering tendering their shares to TRC's mini-tender offer are strongly urged to exercise caution with respect to TRC's mini-tender offer, obtain current market quotations for their Canadian Tire shares, consult with their financial advisors and carefully examine TRC's mini-tender offer to determine whether it is in their best interests to tender to an offer that is BELOW the current market price, the company said.
The Canadian Securities Administrators have expressed serious concerns about mini-tender offers such as the possibility that investors might tender to a mini-tender offer based upon a misunderstanding of the terms of the offer, including the per security price available under the offer relative to the market price of such securities, Canadian Tire said.
Securities regulators in the United States and Canada have recommended that shareholders exercise caution in connection with mini-tender offers and that they consult their investment advisors regarding these types of offers, it added.
Toronto-based Canadian Tire operates more than 1,200 general merchandise and apparel retail stores and gas stations in an inter-related network of businesses engaged in retail, financial services and petroleum. Canadian Tire Retail, Canada's most shopped general merchandise retailer, with 475 stores operated by dealers across Canada offers a unique mix of products and services through three specialty categories in which the organization is the market leader: automotive, sports and leisure and home products.
PartSource is an automotive parts specialty chain with 88 stores designed to meet the needs of purchasers of automotive parts - professional automotive installers and serious do-it-yourselfers.
Canadian Tire Petroleum is one of the country's largest and most productive independent retailers of gasoline, operating 273 gas bars, 267 convenience stores and kiosks and 73 car washes.
Mark's Work Wearhouse is one of the country's leading apparel retailers operating 375 stores in Canada. Under the Clothes that Work marketing strategy, Mark's sells apparel and footwear in work, work-related, casual and active-wear categories, as well as health-care and business-to-business apparel.
Canadian Tire Financial Services has issued over five million Canadian Tire MasterCard credit cards and also markets related financial products and services for retail and petroleum customers.
More than 57,000 Canadians work across Canadian Tire's organization from coast-to-coast in the enterprise's retail, financial services and petroleum businesses.
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