CVRD Successfully Completes Take-Over Bid for Canico
RIO DE JANEIRO, Brazil, December 9 /PRNewswire/ -- Companhia Vale do Rio Doce (CVRD) announces that its offer to acquire all of the issued and outstanding common shares of Canico Resource Corp. (Canico) (TSX: CNI.TO) expired at 8:00 p.m. (Toronto time) on December 8, 2005. Between 8:00 p.m. (Toronto time) on November 28, 2005 and the expiry time of the offer, CVRD took up an additional 2,748,366 common shares of Canico, including shares deposited by guaranteed delivery, for CAD$ 20.80 in cash per Canico share which when aggregated with the Canico shares previously acquired by CVRD under the take-over bid, represents 99.2% of the Canico common shares outstanding on a fully-diluted basis.
Payment for such Canico common shares is expected to be made on or prior to December 12, 2005, and will represent a disbursement by CVRD of approximately CAD$ 57 million.
CVRD intends, as soon as permitted, to acquire the remaining Canico common shares by means of a statutory compulsory acquisition under Section 300 of the British Columbia Business Corporation Act at the same price as the offer price, and to de-list the shares.
Canico owns the Onca Puma nickel laterite project, a ferro-nickel deposit located in the Brazilian state of Para. According to the feasibility studies, the plant will have a nominal capacity to produce 57,000 tons of nickel per year and its development will demand investments of US$ 1.1 billion. Production start up of the first module is scheduled for 2008.
CVRD will review the Canico Onca Puma nickel laterite project in order to maximize the synergies with its current and future operations, and, therefore the return to CVRD's shareholders.
The acquisition of Canico and the Onca Puma project is an important step taken by CVRD to become one of the global leading players in the non-ferrous metals business in the future. At the same time, it is consistent with Company's strategic goal of a continuous shareholder value creation.
Web site: http://www.cvrd.com.br
SOURCE CVRD - Companhia Vale do Rio Doce S.A.
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