Cal­lidus holder Cat­a­lyst to not ten­der to Braslyn of­fer

Stockwatch Daily - - FINANCE - An anony­mous di­rec­tor re­ports

THE CAT­A­LYST Cap­i­tal Group Inc. com­mented to­day on the dis­clo­sure by Braslyn Ltd. that it has of­fered to pur­chase all pub­licly held com­mon shares of Cal­lidus Cap­i­tal Corp. for $2 per share.

Cat­a­lyst is not mak­ing the Of­fer, does not in­tend to ten­der shares into the Of­fer and will main­tain its ex­ist­ing 72% share own­er­ship of Cal­lidus. Cat­a­lyst and the Of­feror have had dis­cus­sions re­gard­ing the terms of mu­tu­ally ac­cept­able Cat­a­lyst rollover and sup­port agree­ments to be en­tered into as a con­di­tion of the Of­fer. Ac­cord­ingly, if the Of­fer pro­ceeds and the req­ui­site ma­jor­ity of pub­lic Cal­lidus share­hold­ers sup­port the Of­fer, Cat­a­lyst in­tends to co­op­er­ate as nec­es­sary to per­mit the pub­lic share­hold­ers to ob­tain the ben­e­fit of the Of­fer and to per­mit the pri­va­ti­za­tion of Cal­lidus. New­ton Glass­man and James Ri­ley of Cat­a­lyst, both Di­rec­tors of Cal­lidus, have been re­cused from the Cal­lidus board de­lib­er­a­tions through­out the Cal­lidus pri­va­ti­za­tion process and will re­main so.

Rocco DiPuc­chio, a Man­ag­ing Di­rec­tor and Part­ner of Cat­a­lyst, said, “Cat­a­lyst be­lieves in Cal­lidus’ prospects, that it has sub­stan­tial un­rec­og­nized value and that it is a tremen­dous ve­hi­cle for fur­ther value cre­ation over the long-term. Cal­lidus has reached a point where the port­fo­lio is grow­ing, ad­di­tional lead­er­ship is in place and legacy as­sets are be­gin­ning to be mon­e­tized at favourable val­ues. How­ever, Cat­a­lyst rec­og­nizes that the Of­fer by Braslyn rep­re­sents an op­por­tu­nity for mi­nor­ity share­hold­ers to re­ceive a premium to the re­cent mar­ket price of the shares and for Cal­lidus to con­tinue its turn­around as a pri­vate com­pany. Cal­lidus’ pub­lic share­hold­ers have a choice on this Of­fer and Cat­a­lyst in­tends to re­spect the out­come of their de­ci­sion.

About The Cat­a­lyst Cap­i­tal Group Inc.

The Cat­a­lyst Cap­i­tal Group Inc., a pri­vate eq­uity in­vest­ment firm with more than $6 bil­lion in as­sets un­der man­age­ment founded in 2002, is a leader in op­er­a­tionally fo­cused turn­around in­vest­ing. The firm’s man­date is to man­u­fac­ture risk ad­justed re­turns, in keep­ing with its phi­los­o­phy of “we buy what we can build.” Cat­a­lyst’s Guid­ing Prin­ci­ples of in­vest­ment ex­cel­lence through op­er­a­tional in­volve­ment, su­pe­rior an­a­lyt­ics, at­ten­tion to de­tail, in­tel-

lec­tual cu­rios­ity, team and rep­u­ta­tion are key to the firm’s suc­cess. The Cat­a­lyst team col­lec­tively pos­sesses more than 110 years of ex­ten­sive ex­pe­ri­ence in re­struc­tur­ing, credit mar­kets and mer­chant and in­vest­ment bank­ing in Canada, the United States, Latin Amer­ica and Europe. For more in­for­ma­tion, please visit www.cat­cap­i­tal.com.

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